The presentation on supply covers key economic concepts like the law of supply, equilibrium in markets, and factors that cause shifts in the supply curve. It highlights the historical understanding of supply and demand, the relationship between price and quantity supplied, and examples of supply schedules and curves. Additionally, it describes how market forces influence equilibrium, where supply and demand intersect, and the factors affecting market supply and demand.

1. Presentation On
Supply
This Supply Presentation is given by
group B
F E N I U N I V E R S I T Y

2. Contents of the
presentation
Section 1: Supply
Supply and Demand history
Introduction
The law of supply
Supply schedule and supply curve
Section 2: Equilibrium
Intro
Equilibrium in market
Example
Section 3: Market Demand
Intro
Causes of Shifts in the Market Supply Curve
Example
Presentation On
Supply
03/08/2021
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3. Team Members
MD.TANIM HOSSAIN
Id: 191031009
IQBAL HOSSAIN
BHUIYAN
Id: 191031006
MIRAZ HOSSAIN
Id:191031012
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4. Team Members
ABDULLA AL NOMAN
Id: 191031008
ABDUL BARI CHADON
Id: 191031017
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5. Supply and
Demand history
The power of supply and demand was
understood to some extent by several early
Muslim economists who said:
"If desire for goods increases while its
availability decreases, its price rises. On the
other hand, if availability of the good
increases and the desire for it decreases, the
price comes down."
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Presentation On
Supply
03/08/2021

6. Supply and demand is perhaps one of the
most fundamental concepts of economics and
it is the backbone of a market economy.
Supply represents how much the market can
offer. The quantity supplied refers to the amount
of a certain good producers are willing to supply
when receiving a certain price. The correlation
between price and how much of a good or service
is supplied to the market is known as the supply
relationship. Price, therefore, is a reflection of
supply and demand.
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Presentation On
Supply
03/08/2021
Introduction

7. The law of
supply
The law of demand states that, if all other
factors remain equal, the higher the price of a
good, the less people will demand that good.
The amount of a good that buyers purchase
at a higher price is less because as the price
of a good goes up, so does the opportunity
cost of buying that good.
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8. Supply schedule and supply
curve
A supply schedule is a table that shows the
quantity supplied at each price.
A supply curve is a graph that shows the
quantity supplied at each price. Sometimes the
supply curve is called a supply schedule because
it is a graphical representation of the supply
schedule.
Here's an example of a supply schedule from the
market for gasoline:
Price (per gallon) Quantity supplied (millions of gallons)
$1.00
500
$1.20
$1.40
$1.60
550
600
640
Price is measured in dollars per gallon of
gasoline, and quantity supplied is measured
in millions of gallons.
Here's the same information shown as a
supply curve with quantity on the horizontal
axis and the price per gallon on the vertical
axis. Note that this is an exception to the
normal rule in mathematics that the
independent variable goes on the horizontal
axis and the dependent variable goes on the
vertical.
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9. A supply curve for
gasoline
The shape of supply curves will vary somewhat according to the product:
steeper, flatter, straighter, or more curved. Nearly all supply curves, however,
share a basic similarity: they slope up from left to right and illustrate the law of
supply. As the price increases, say, from $1.00 per gallon to $2.20 per gallon,
the quantity supplied increases from 500 million gallons to 720 million gallons.
Conversely, as the price decreases, the quantity supplied decreases.
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10. THE SUPPLY CURVE
• The Supply Curve is the
graphical representation of
Supply Schedule.
Price of Coffee Quantity supplied of coffee
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11. Determinants Of
Supply
Price
Cost of production
Technological progress
Prices of related outputs
Govt policy
All factors other than price cause a shift of
the
supply curve and is called a change in supply
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12. SHIFT IN SUPPLY CURVE
There is a shift in Supply Curve {Rightward/Leftward
shift} when there is a change in the supply of a
commodity due to other factors, Price remaining
Constant.
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13. EQUILIBRIUM
Equilibrium - perfect balance in
supply and demand
Determines market output and price
Add a It is commonly understood as the most common form of
economic equilibrium. It is where the supply and demand curves
on a price-quantity graph intersect as shown below:
There is a supply curve and demand curve. The supply curve goes up as price and quantity increase. Since there is a higher
price, more goods and services are willing to be supplied.
On the other hand, the demand curve goes down as price and quantity increase. It is because when there is a higher price,
fewer goods and services are demanded. It applies to most normal goods, such as food, clothing, electronics, etc.
It can also be seen that there are certain price and quantity levels in which the graphs intersect. That point represents the
economic equilibrium.
In macroeconomics – the study of the overall economy as opposed to individuals and companies – the equilibrium can be
represented in different forms. There is an equilibrium for the money supply, aggregate demand/supply, interest rates,
inflation rates, production, etc.
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14. Market forces drive
market to equilibrium
at prices < equilibrium level: excess
demand (amount by which quantity
demanded
at price > equilibrium level: excess supply
equilibrium price is market clearing
price: no excess demand or excess supply
exceeds quantity supplied at the specified
price)
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15. Equilibrium in a
Market
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16. Market
Demand Definition: Market demand describes the demand for a given product and who wants
to purchase it. This is determined by how willing consumers are to spend a certain
price on a particular good or service. As market demand increases, so does price.
When the demand decreases, price will go down as well. Market demand is the total
of what everyone within a specific industry desires and can help guide merchants
when building an ecommerce site.
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17. Market supply is total supply brought to the market by producers at each price. To
calculate, sum the individual supply schedules
Supply is not necessarily the amount that is actually sold, since, if consumers do
not wish to buy the product, it will remain unsold
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18. C a u s e s o f S h i f t s i n t h e M a r k e t S u p p l y C u r v e
1.Changes in the unit costs of produc<on
1. Lower unit costs mean that a business can supply more at each price – for example higher produc9vity
– Higher unit costs cause an inward shiI of supply e.g. a rise in wage rates or an increase in energy prices / other raw materials
2.A fall (deprecia<on) in the exchange rate causes an increase in prices of imported components and raw materials –
3.Advances in produc<on technologies – outward shiI of supply
4.The entry of new producers into the market – outward shiI
5.Favourable weather condi<ons e.g. for agricultural products
6.Taxes, subsidies and government regula<ons
– Indirect taxes cause an inward shiI of supply
– Subsidies cause an outward shiI of supply
– Regula<ons increase costs – causing an inward shiI of supply
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20. 01
References
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03
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Economics.help
Investopedia

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