Supply
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This document discusses supply, supply curves, and factors that affect supply. It defines supply as the quantity producers are willing to sell at a given price while holding other factors constant. The supply curve is upward sloping because marginal costs increase with higher production. Changes in marginal costs, number of producers, and expectations can shift the supply curve. Supply is more elastic when it is easier and faster for businesses to change production in response to price changes. While computer prices have fallen, supply has increased, which can be explained by technological improvements lowering marginal costs of production.
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Price elasticity of supply
This document discusses the elasticity of supply. It defines supply and the law of supply. Elasticity of supply refers to the responsiveness of quantity supplied to changes in price. There are five types of elasticity: perfectly elastic, perfectly inelastic, elastic, inelastic, and unit elastic. Determinants that impact elasticity include the time period available to adjust supply, improvements in technology, stock availability, number of producers, and increases in production costs relative to output.
Importance of price elasticity of supply
Price elasticity of supply measures the relationship between change in quantity supplied and a change in price.
Basically elasticity of supply shows the amounts that costs rise as production increases
• When Pes > 1, then supply is price elastic
• When Pes < 1, then supply is price inelastic
• When Pes = 0, then supply is perfectly inelastic
• When Pes = infinity, then supply is perfectly elastic following a change in demand
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The document discusses supply, factors that influence supply, and supply elasticity. It defines supply as the quantity producers are willing and able to offer for sale at a given price. The quantity supplied increases with price and decreases with falling price, as depicted by a positively sloped supply curve. A supply schedule shows the quantity supplied at different prices. Elasticity of supply measures the responsiveness of quantity supplied to changes in price and other factors. Production is defined as the process of combining inputs to create outputs that are sold in the market.
Unit 2 Lesson 1: The Basics of Demand
This document discusses the basics of demand, including:
- Demand refers to a consumer's willingness and ability to purchase a good at a given price.
- The law of demand states that as price increases, quantity demanded decreases, and vice versa.
- Demand curves on graphs show price on the vertical axis and quantity on the horizontal axis, with the curve sloping downward.
- Movement along the demand curve occurs when price changes cause shifts in quantity demanded, while shifts of the entire curve happen when other factors influencing demand change.
Price elasticity supply
Price elasticity of supply measures how much the quantity supplied of a good responds to changes in its price. Supply is more elastic when producers can easily increase output by utilizing spare capacity, high stock levels, short production times, or flexible reallocation of resources. Supply is inelastic when producers face constraints increasing output in response to higher prices. The elasticity of supply determines whether a change in demand results in a large or small change in price.
Supply
1. Supply is the quantity of a commodity that sellers are willing and able to offer for sale at a given price and time.
2. The law of supply states that the quantity supplied varies directly with price - supply increases when price rises and decreases when price falls.
3. Determinants of supply include the goals of firms, price of the good, technology, government policy, and improvements in transport and communication.
Supply
1. Supply is defined as the quantity of a commodity that sellers are willing and able to offer for sale at a given price and time.
2. The law of supply states that the quantity supplied varies directly with price - when price rises, supply increases, and when price falls, supply decreases.
3. The determinants of supply include the goals of firms, price of the good, technology, government policy, and improvements in transport and communication.
Chapter 4 Supply
This document summarizes key concepts about supply in economics. It defines supply as the quantity of a good or service one is willing and able to provide at various prices. It describes the law of supply, which states that firms will supply more of a good at a higher price and less at a lower price. It explains how to graph a market supply curve and major factors that can cause supply to shift, such as changes in marginal costs, the number of sellers, or producer expectations.
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Price elasticity of supply
This document discusses the elasticity of supply. It defines supply and the law of supply. Elasticity of supply refers to the responsiveness of quantity supplied to changes in price. There are five types of elasticity: perfectly elastic, perfectly inelastic, elastic, inelastic, and unit elastic. Determinants that impact elasticity include the time period available to adjust supply, improvements in technology, stock availability, number of producers, and increases in production costs relative to output.
Importance of price elasticity of supply
Price elasticity of supply measures the relationship between change in quantity supplied and a change in price.
Basically elasticity of supply shows the amounts that costs rise as production increases
• When Pes > 1, then supply is price elastic
• When Pes < 1, then supply is price inelastic
• When Pes = 0, then supply is perfectly inelastic
• When Pes = infinity, then supply is perfectly elastic following a change in demand
Eco
The document discusses supply, factors that influence supply, and supply elasticity. It defines supply as the quantity producers are willing and able to offer for sale at a given price. The quantity supplied increases with price and decreases with falling price, as depicted by a positively sloped supply curve. A supply schedule shows the quantity supplied at different prices. Elasticity of supply measures the responsiveness of quantity supplied to changes in price and other factors. Production is defined as the process of combining inputs to create outputs that are sold in the market.
Unit 2 Lesson 1: The Basics of Demand
This document discusses the basics of demand, including:
- Demand refers to a consumer's willingness and ability to purchase a good at a given price.
- The law of demand states that as price increases, quantity demanded decreases, and vice versa.
- Demand curves on graphs show price on the vertical axis and quantity on the horizontal axis, with the curve sloping downward.
- Movement along the demand curve occurs when price changes cause shifts in quantity demanded, while shifts of the entire curve happen when other factors influencing demand change.
Price elasticity supply
Price elasticity of supply measures how much the quantity supplied of a good responds to changes in its price. Supply is more elastic when producers can easily increase output by utilizing spare capacity, high stock levels, short production times, or flexible reallocation of resources. Supply is inelastic when producers face constraints increasing output in response to higher prices. The elasticity of supply determines whether a change in demand results in a large or small change in price.
Supply
1. Supply is the quantity of a commodity that sellers are willing and able to offer for sale at a given price and time.
2. The law of supply states that the quantity supplied varies directly with price - supply increases when price rises and decreases when price falls.
3. Determinants of supply include the goals of firms, price of the good, technology, government policy, and improvements in transport and communication.
Supply
1. Supply is defined as the quantity of a commodity that sellers are willing and able to offer for sale at a given price and time.
2. The law of supply states that the quantity supplied varies directly with price - when price rises, supply increases, and when price falls, supply decreases.
3. The determinants of supply include the goals of firms, price of the good, technology, government policy, and improvements in transport and communication.
Chapter 4 Supply
This document summarizes key concepts about supply in economics. It defines supply as the quantity of a good or service one is willing and able to provide at various prices. It describes the law of supply, which states that firms will supply more of a good at a higher price and less at a lower price. It explains how to graph a market supply curve and major factors that can cause supply to shift, such as changes in marginal costs, the number of sellers, or producer expectations.
Supply and elasticity of supply
The document discusses supply and elasticity of supply. It defines supply as the quantity of a commodity a seller is willing to sell at a given price during a specific time period. Factors that affect individual and market supply are then outlined, including the commodity's own price, related goods prices, technology, number of producers, and taxes. The law of supply states that, other things remaining the same, supply increases with price and decreases with falling price. Elasticity of supply is defined as the degree to which supply responds to price changes, which can be measured mathematically as the percentage change in quantity supplied divided by the percentage change in price.
Price Elasticity of Supply
This document discusses the price elasticity of supply. It defines price elasticity of supply as the relationship between a change in quantity supplied and a change in price. It also provides the formula for calculating price elasticity of supply. Supply can be elastic, unit elastic, or inelastic depending on the coefficient. The document lists factors that affect price elasticity of supply, such as factor substitution possibilities, spare production capacity, stock levels, and time frames. Short-term supply may be more inelastic due to fixed factors, while long-run supply is more elastic.
Elasticity of supply
This document defines elasticity of supply as the responsiveness of the quantity supplied of a good to a change in its price. It provides a formula for calculating elasticity of supply and describes different types of supply elasticity, including perfect inelastic supply where quantity supplied does not change with price changes, relatively less-elastic supply where supply changes less than proportionately to price changes, relatively greater elastic supply where supply changes substantially to small price changes, unit elastic supply where supply changes exactly proportionately to price changes, and perfect elastic supply where supply is infinite at a given price point.
supply and market eqilibrium
The document discusses supply and demand equilibrium in markets. It defines the law of supply, individual versus market supply, and short-run versus long-run supply curves. It also discusses the determinants of supply curves and how shifts in supply curves occur due to changes in these determinants. The key factors that determine equilibrium price and quantity in a market are the intersection of supply and demand. Shifts in either supply or demand curves will result in a new equilibrium price and quantity.
Eco 1.report
1) The document discusses the basics of demand and supply, including the laws of demand and supply. It defines demand, supply, and the factors that influence them.
2) The law of demand states that as price increases, quantity demanded decreases, assuming all other factors remain constant. The law of supply says that as price rises, quantity supplied also rises.
3) The document examines demand and supply curves/schedules, and the differences between changes in quantity demanded/supplied versus shifts of the demand/supply curves.
Market supply
1. Supply is defined as the willingness and ability of sellers to provide a range of quantities of a good at different prices over a given time period.
2. The supply price is the minimum price sellers will accept for a given quantity, and the quantity supplied refers to the specific amount provided at a given price.
3. The law of supply states that, all else equal, higher prices result in greater quantities supplied as producers respond to higher costs of production at larger output levels.
Price elasticity of demand
This document discusses price elasticity of demand. It defines price elasticity of demand as the percentage change in quantity demanded of a good divided by the percentage change in its price. It notes there are different types of price elasticity including perfectly elastic demand, perfectly inelastic demand, relatively elastic demand, relatively inelastic demand, and unitary elastic demand. Examples are provided for each type to illustrate how demand changes relative to price changes for different goods.
law of deemand easily defined
Demand is determined by desire, ability to pay, and willingness to spend. The key factors that influence demand are price, income, utility, habits, fashion, weather, advertising, taxation, and speculation. According to the law of demand, other things being equal, demand is higher when price falls and lower when price rises, as consumers will buy more of a good or service at a lower price. The assumptions of the law of demand include no changes in income, preferences, related good prices, expectations of future prices, taxes, or climate conditions. Exceptions include inferior goods, speculation, prestige goods, illusions, fashion, and branded good quality.
Price Elasticity Of Supply - PES
Price elasticity of supply measures the responsiveness to the supply of a good or service after a change in its market price. According to basic economic theory, the supply of a good will increase when its price rises. Conversely, the supply of a good will decrease when its price decreases.
Price Elasticity of Supply
The document discusses price elasticity of supply. It provides an example where the market for tractors is supplied by two firms, with a 10% price increase leading to a 10% output increase for one firm and 20% for the other, resulting in an overall price elasticity of supply of 1.5. It also discusses situations where a demand increase leads to no price change, indicating perfectly inelastic supply, and where a demand increase leads to a large price rise but small quantity rise, indicating inelastic supply. Potential reasons for short-term price elastic supply in an industry include spare capacity, high stock levels, and short production times.
Lesson 7--supply[1]
This document discusses supply, including the law of supply, supply schedules and curves, determinants of supply, and supply elasticity. The key points are:
1) The law of supply states that the quantity supplied varies directly with price - producers will supply more of a product as the price increases.
2) Supply curves show the different quantities producers will supply at different price points. They are generally upward sloping.
3) Determinants that can shift the supply curve include factor costs, technology, regulations, expectations, and the number of firms in the industry. Anything that impacts production costs or ability will shift the supply curve.
Supply
The document discusses the economic concept of supply. It defines supply as the amount of a good or service a firm is willing and able to sell per unit of time. The dependent variable in supply is the quantity supplied, while the independent variables that influence supply are the good's own price, input prices, technology, taxes, and subsidies. The supply curve shows the relationship between quantity supplied and price, holding all other supply determinants constant. The law of supply states that supply curves slope upwards, meaning higher prices result in greater quantity supplied. Changes in the independent variables like input prices or technology cause the supply curve to shift, rather than move along the curve.
Unit 2 Lesson 3 Presentation
The document discusses the basics of supply in economics. It defines supply as the willingness and ability of sellers to produce and sell a good. The law of supply states that quantity supplied varies directly with price - producers supply more at higher prices due to increased potential profits. A supply schedule lists the quantity supplied at different prices, and the supply curve shows this relationship graphically by plotting points from the schedule on a graph with quantity on the x-axis and price on the y-axis. The supply curve slopes upward. Determinants like costs of resources, technology, and number of sellers can shift the entire supply curve by changing the willingness or ability of producers.
Price elasticity of demand
Price elasticity of demand measures how responsive consumer demand is to changes in price. It is calculated by taking the percentage change in quantity demanded divided by the percentage change in price. Demand can be elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic depending on how much quantity demanded changes relative to price changes. Factors like availability of substitutes, necessity of the product, and proportion of income spent on it affect price elasticity. Understanding price elasticity helps firms set prices to maximize total revenue.
Elasticity of supply
Elasticity of supply measures how responsive the quantity supplied is to changes in price. It can be elastic, inelastic, or unitary elastic. Elastic means quantity supplied is very sensitive to price changes. Inelastic means quantity supplied is not very sensitive to price changes. Unitary elastic means quantity supplied moves exactly with price changes. Elasticity is calculated by taking the percentage change in quantity supplied divided by the percentage change in price. If the result is greater than 1, supply is elastic. If less than 1, supply is inelastic. If equal to 1, supply is unitary elastic.
La Oferta explicación en ingles - the supply
The supply is the quantity of goods and services that producers are willing to offer at different price levels, as represented by a supply curve. The supply curve shows that as price increases, the quantity offered also increases, due to the direct relationship between price and quantity. The equilibrium point is where the quantity demanded equals the quantity supplied, which is the balance amount represented by the intersection of the supply and demand curves, where there is no shortage or surplus.
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This document discusses the concepts of supply, the law of supply, determinants of supply, and the differences between changes in supply versus changes in quantity supplied. It defines supply as the amount of a product producers are willing to offer for sale at various price points. The law of supply states that, all else equal, quantity supplied increases with price and decreases with price. Determinants of supply include resource prices, technology, taxes/subsidies, number of sellers, and price expectations. A change in these determinants causes the supply curve to shift, while a change in price leads to a change in quantity supplied along the existing supply curve.
Supply Micro Economics ECO101
This document discusses supply and the supply curve. It defines supply as the quantity of a good sellers are willing and able to sell. A supply curve shows the relationship between price and quantity supplied, with quantity supplied increasing as price increases. The law of supply states there is a direct relationship between price and quantity supplied. A shift in the supply curve occurs when a determinant of supply changes, such as input prices or technology, while movement along the curve shows changes in quantity supplied due to price changes. The document also discusses market supply, determinants of supply, and how equilibrium price and quantity are affected by changes in demand and supply.
Supply
The document discusses supply, the determinants of supply, and causes of shifts in the supply curve. It states that supply refers to the quantity of a product suppliers are willing to sell at various prices. The law of supply states that quantity supplied increases with price and decreases with falling price. The main determinants of supply are the product's price, production costs, prices of other goods, technology, and government policies. A shift in the supply curve occurs due to changes in non-price factors and can move the curve right or left, while movement along the curve is due to price changes and extends or contracts the quantity supplied.
Lec 13 Supply and its concept
Supply and its concept
If a firm supplies a good or service, then the firm
1. Has the resources and the technology to produce it,
2. Can profit from producing it, and
3. Has made a definite plan to produce and sell it.
Resources and technology determine what it is possible to produce. Supply reflects a decision about which technologically feasible items to produce.
The quantity supplied of a good or service is the amount that producers plan to sell during a given time period at a particular price.
Supply
Supply refers to the quantity of a product offered for sale. The law of supply states that more of a product will be offered at a higher price and less at a lower price. Supply curves show the relationship between price and quantity supplied, and can be individual or market curves representing one firm or multiple firms. Factors that affect supply include costs of inputs, productivity, technology, taxes, expectations, government regulations, and number of sellers. When these factors change, the supply curve shifts representing a change in quantity supplied at each price level.
The theory of supply
This document discusses supply and supply curves. It defines supply as the amount producers are willing and able to offer for sale at different prices. The law of supply states that, all else equal, higher prices lead to higher quantities supplied. Supply curves slope upward to show this relationship. They slope up because higher prices increase profits, incentivizing greater production, and higher output requires higher prices to cover increased costs. The shape and position of supply curves can change in the short and long run depending on factors like production time, stock levels, and costs. Shifts in supply may occur due to changes in costs, technology, taxes, climate, number of producers, or substitute prices. Producer surplus measures profits to producers from selling above their minimum
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Supply and elasticity of supply
The document discusses supply and elasticity of supply. It defines supply as the quantity of a commodity a seller is willing to sell at a given price during a specific time period. Factors that affect individual and market supply are then outlined, including the commodity's own price, related goods prices, technology, number of producers, and taxes. The law of supply states that, other things remaining the same, supply increases with price and decreases with falling price. Elasticity of supply is defined as the degree to which supply responds to price changes, which can be measured mathematically as the percentage change in quantity supplied divided by the percentage change in price.
Price Elasticity of Supply
This document discusses the price elasticity of supply. It defines price elasticity of supply as the relationship between a change in quantity supplied and a change in price. It also provides the formula for calculating price elasticity of supply. Supply can be elastic, unit elastic, or inelastic depending on the coefficient. The document lists factors that affect price elasticity of supply, such as factor substitution possibilities, spare production capacity, stock levels, and time frames. Short-term supply may be more inelastic due to fixed factors, while long-run supply is more elastic.
Elasticity of supply
This document defines elasticity of supply as the responsiveness of the quantity supplied of a good to a change in its price. It provides a formula for calculating elasticity of supply and describes different types of supply elasticity, including perfect inelastic supply where quantity supplied does not change with price changes, relatively less-elastic supply where supply changes less than proportionately to price changes, relatively greater elastic supply where supply changes substantially to small price changes, unit elastic supply where supply changes exactly proportionately to price changes, and perfect elastic supply where supply is infinite at a given price point.
supply and market eqilibrium
The document discusses supply and demand equilibrium in markets. It defines the law of supply, individual versus market supply, and short-run versus long-run supply curves. It also discusses the determinants of supply curves and how shifts in supply curves occur due to changes in these determinants. The key factors that determine equilibrium price and quantity in a market are the intersection of supply and demand. Shifts in either supply or demand curves will result in a new equilibrium price and quantity.
Eco 1.report
1) The document discusses the basics of demand and supply, including the laws of demand and supply. It defines demand, supply, and the factors that influence them.
2) The law of demand states that as price increases, quantity demanded decreases, assuming all other factors remain constant. The law of supply says that as price rises, quantity supplied also rises.
3) The document examines demand and supply curves/schedules, and the differences between changes in quantity demanded/supplied versus shifts of the demand/supply curves.
Market supply
1. Supply is defined as the willingness and ability of sellers to provide a range of quantities of a good at different prices over a given time period.
2. The supply price is the minimum price sellers will accept for a given quantity, and the quantity supplied refers to the specific amount provided at a given price.
3. The law of supply states that, all else equal, higher prices result in greater quantities supplied as producers respond to higher costs of production at larger output levels.
Price elasticity of demand
This document discusses price elasticity of demand. It defines price elasticity of demand as the percentage change in quantity demanded of a good divided by the percentage change in its price. It notes there are different types of price elasticity including perfectly elastic demand, perfectly inelastic demand, relatively elastic demand, relatively inelastic demand, and unitary elastic demand. Examples are provided for each type to illustrate how demand changes relative to price changes for different goods.
law of deemand easily defined
Demand is determined by desire, ability to pay, and willingness to spend. The key factors that influence demand are price, income, utility, habits, fashion, weather, advertising, taxation, and speculation. According to the law of demand, other things being equal, demand is higher when price falls and lower when price rises, as consumers will buy more of a good or service at a lower price. The assumptions of the law of demand include no changes in income, preferences, related good prices, expectations of future prices, taxes, or climate conditions. Exceptions include inferior goods, speculation, prestige goods, illusions, fashion, and branded good quality.
Price Elasticity Of Supply - PES
Price elasticity of supply measures the responsiveness to the supply of a good or service after a change in its market price. According to basic economic theory, the supply of a good will increase when its price rises. Conversely, the supply of a good will decrease when its price decreases.
Price Elasticity of Supply
The document discusses price elasticity of supply. It provides an example where the market for tractors is supplied by two firms, with a 10% price increase leading to a 10% output increase for one firm and 20% for the other, resulting in an overall price elasticity of supply of 1.5. It also discusses situations where a demand increase leads to no price change, indicating perfectly inelastic supply, and where a demand increase leads to a large price rise but small quantity rise, indicating inelastic supply. Potential reasons for short-term price elastic supply in an industry include spare capacity, high stock levels, and short production times.
Lesson 7--supply[1]
This document discusses supply, including the law of supply, supply schedules and curves, determinants of supply, and supply elasticity. The key points are:
1) The law of supply states that the quantity supplied varies directly with price - producers will supply more of a product as the price increases.
2) Supply curves show the different quantities producers will supply at different price points. They are generally upward sloping.
3) Determinants that can shift the supply curve include factor costs, technology, regulations, expectations, and the number of firms in the industry. Anything that impacts production costs or ability will shift the supply curve.
Supply
The document discusses the economic concept of supply. It defines supply as the amount of a good or service a firm is willing and able to sell per unit of time. The dependent variable in supply is the quantity supplied, while the independent variables that influence supply are the good's own price, input prices, technology, taxes, and subsidies. The supply curve shows the relationship between quantity supplied and price, holding all other supply determinants constant. The law of supply states that supply curves slope upwards, meaning higher prices result in greater quantity supplied. Changes in the independent variables like input prices or technology cause the supply curve to shift, rather than move along the curve.
Unit 2 Lesson 3 Presentation
The document discusses the basics of supply in economics. It defines supply as the willingness and ability of sellers to produce and sell a good. The law of supply states that quantity supplied varies directly with price - producers supply more at higher prices due to increased potential profits. A supply schedule lists the quantity supplied at different prices, and the supply curve shows this relationship graphically by plotting points from the schedule on a graph with quantity on the x-axis and price on the y-axis. The supply curve slopes upward. Determinants like costs of resources, technology, and number of sellers can shift the entire supply curve by changing the willingness or ability of producers.
Price elasticity of demand
Price elasticity of demand measures how responsive consumer demand is to changes in price. It is calculated by taking the percentage change in quantity demanded divided by the percentage change in price. Demand can be elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic depending on how much quantity demanded changes relative to price changes. Factors like availability of substitutes, necessity of the product, and proportion of income spent on it affect price elasticity. Understanding price elasticity helps firms set prices to maximize total revenue.
Elasticity of supply
Elasticity of supply measures how responsive the quantity supplied is to changes in price. It can be elastic, inelastic, or unitary elastic. Elastic means quantity supplied is very sensitive to price changes. Inelastic means quantity supplied is not very sensitive to price changes. Unitary elastic means quantity supplied moves exactly with price changes. Elasticity is calculated by taking the percentage change in quantity supplied divided by the percentage change in price. If the result is greater than 1, supply is elastic. If less than 1, supply is inelastic. If equal to 1, supply is unitary elastic.
La Oferta explicación en ingles - the supply
The supply is the quantity of goods and services that producers are willing to offer at different price levels, as represented by a supply curve. The supply curve shows that as price increases, the quantity offered also increases, due to the direct relationship between price and quantity. The equilibrium point is where the quantity demanded equals the quantity supplied, which is the balance amount represented by the intersection of the supply and demand curves, where there is no shortage or surplus.
Lecture3
This document discusses the concepts of supply, the law of supply, determinants of supply, and the differences between changes in supply versus changes in quantity supplied. It defines supply as the amount of a product producers are willing to offer for sale at various price points. The law of supply states that, all else equal, quantity supplied increases with price and decreases with price. Determinants of supply include resource prices, technology, taxes/subsidies, number of sellers, and price expectations. A change in these determinants causes the supply curve to shift, while a change in price leads to a change in quantity supplied along the existing supply curve.
Supply Micro Economics ECO101
This document discusses supply and the supply curve. It defines supply as the quantity of a good sellers are willing and able to sell. A supply curve shows the relationship between price and quantity supplied, with quantity supplied increasing as price increases. The law of supply states there is a direct relationship between price and quantity supplied. A shift in the supply curve occurs when a determinant of supply changes, such as input prices or technology, while movement along the curve shows changes in quantity supplied due to price changes. The document also discusses market supply, determinants of supply, and how equilibrium price and quantity are affected by changes in demand and supply.
Supply
The document discusses supply, the determinants of supply, and causes of shifts in the supply curve. It states that supply refers to the quantity of a product suppliers are willing to sell at various prices. The law of supply states that quantity supplied increases with price and decreases with falling price. The main determinants of supply are the product's price, production costs, prices of other goods, technology, and government policies. A shift in the supply curve occurs due to changes in non-price factors and can move the curve right or left, while movement along the curve is due to price changes and extends or contracts the quantity supplied.
Lec 13 Supply and its concept
Supply and its concept
If a firm supplies a good or service, then the firm
1. Has the resources and the technology to produce it,
2. Can profit from producing it, and
3. Has made a definite plan to produce and sell it.
Resources and technology determine what it is possible to produce. Supply reflects a decision about which technologically feasible items to produce.
The quantity supplied of a good or service is the amount that producers plan to sell during a given time period at a particular price.
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Supply refers to the quantity of a product offered for sale. The law of supply states that more of a product will be offered at a higher price and less at a lower price. Supply curves show the relationship between price and quantity supplied, and can be individual or market curves representing one firm or multiple firms. Factors that affect supply include costs of inputs, productivity, technology, taxes, expectations, government regulations, and number of sellers. When these factors change, the supply curve shifts representing a change in quantity supplied at each price level.
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This document discusses supply and supply curves. It defines supply as the amount producers are willing and able to offer for sale at different prices. The law of supply states that, all else equal, higher prices lead to higher quantities supplied. Supply curves slope upward to show this relationship. They slope up because higher prices increase profits, incentivizing greater production, and higher output requires higher prices to cover increased costs. The shape and position of supply curves can change in the short and long run depending on factors like production time, stock levels, and costs. Shifts in supply may occur due to changes in costs, technology, taxes, climate, number of producers, or substitute prices. Producer surplus measures profits to producers from selling above their minimum
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Supply content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
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This document discusses three key concepts in economics:
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Supply refers to the quantity of a good or service that producers are willing and able to offer for sale at different prices over a set period of time. The law of supply states that, all else being equal, as price increases, quantity supplied increases and vice versa. Price elasticity of supply measures the responsiveness of quantity supplied to changes in price. Factors that can change the supply curve include changes in marginal costs of production, changes in the number of producers, and changes in producer expectations.
Theory of supply
The document discusses supply and the law of supply. It defines supply as the quantity of a commodity a firm is willing and able to offer for sale at a given price during a given period of time. The law of supply states that other factors remaining constant, the quantity supplied rises as price increases. It is based on assumptions like prices of other goods remaining constant. Price elasticity of supply measures how responsive quantity supplied is to price changes. It is influenced by factors like time, availability of resources, and improvements in technology.
Agriculture and Fishery Arts Handout 1.pptx
This document contains a summary of key concepts related to demand and supply, including:
1) A movement along a demand curve represents a change in quantity demanded as a result of a change in price, with all other factors held constant.
2) A change in demand refers to a shift of the entire demand curve, which can be caused by changes in income, tastes, prices of related goods, or expectations.
3) When the price of a good increases, quantity demanded decreases as consumers substitute to other goods (the substitution effect).
4) An improvement in production technology, with constant demand, will result in an increase in supply and subsequent lowering of price as producers are able to supply more units at
Law of supply
Law of Supply, assumptions of law of supply, exceptions of law of supply, elasticity of law of supply, measurement of elasticity of supply.
Demand Supply and Price Theory - 2.pptx
The document provides an overview of key economic concepts covered in Week 2 including:
- Opportunity cost, incentives, trade, productivity, and the relationship between marginal benefit and marginal cost.
- Three economic models - the circular flow diagram, production possibilities frontier, and market equilibrium.
- Demand, supply, elasticity, and how markets reach equilibrium.
- Factors that shift demand and supply curves such as income, prices of related goods, and input prices.
It also defines important terms like surplus, shortage, price elasticity, income elasticity, and cross price elasticity.
Pe supply & demand student
The document discusses the concepts of supply and demand in markets. It defines demand as the desire, ability, and willingness to buy a product, which is represented by a demand schedule and demand curve. The law of demand states that price and quantity demanded have an inverse relationship. Supply is defined as the quantity of a good producers will offer for sale at a given price, represented by a supply schedule and supply curve. The law of supply says price and quantity supplied have a direct relationship. Equilibrium occurs when quantity supplied equals quantity demanded at the market clearing price. [/SUMMARY]
Supply 1
1) Supply is how much a firm is willing and able to sell at every given price if all else remains the same. The law of supply states that the quantity supplied of a good rises as the price rises.
2) A supply schedule shows the relationship between price and quantity supplied, while a supply curve graphs this relationship. The market supply curve shows the total quantity supplied by all firms in the market.
3) A change in supply refers to a shift of the supply curve, while a change in quantity supplied refers to movement along the existing supply curve. Determinants that can cause supply to change include input prices, technology, the number of sellers, and taxes.
Introduction-to-Supply-and-Demand-Power-Point.ppt
The document discusses supply and demand in economics. It defines demand as the desire, ability, and willingness to buy a product, and supply as the desire, ability, and willingness to offer products for sale. It describes the laws of supply and demand - as price increases, quantity demanded decreases and quantity supplied increases. Non-price factors can cause shifts in supply and demand curves. The goal of markets is to reach equilibrium where quantity supplied equals quantity demanded. Surpluses and shortages occur when supply and demand are not equal. Demand elasticity refers to how responsive quantity demanded is to price changes.
Introduction-to-Supply-and-Demand-Power-Point.ppt
The document discusses supply and demand in economics. It defines demand as the desire, ability, and willingness to buy a product, and supply as the desire, ability, and willingness to offer products for sale. It describes the laws of supply and demand - as price increases, quantity demanded decreases and quantity supplied increases. Non-price factors can cause shifts in supply and demand curves. The goal of markets is to reach equilibrium where quantity supplied equals quantity demanded. Surpluses and shortages occur when supply and demand are not equal. Demand elasticity refers to how responsive quantity demanded is to price changes.
Supply
The document discusses market supply and its key characteristics. It defines supply as the quantities of a good or service that sellers are willing and able to offer for sale at various prices within a given time period, with other factors held constant. Supply is determined by price and time, and comes out of a company's stock or inventory. The main determinants of supply include price, costs of production, technology, taxes/subsidies, and prices of related goods. The law of supply states that, all else equal, supply and price move directly - higher prices lead to increased supply. Market equilibrium exists when supply equals demand.
Law of Supply
This document discusses the law of supply and its key concepts including determinants of supply, assumptions of the law of supply, price elasticity of supply, marginal revenue, and total revenue.
It begins with an introduction to the law of supply and how it relates the quantity supplied of a good to its price when other factors are held constant. It then defines and provides examples of the major determinants of supply.
The document outlines the key assumptions of the law of supply, such as costs and technology remaining unchanged. It also explains price elasticity of supply, how to calculate it, and the different types from perfectly inelastic to perfectly elastic.
Marginal revenue and how it is equivalent to price in competitive markets
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Supply
- 2. Supply Supply refers to the quantity of a good that producers are willing to sell at a given price, holding constant any other factors that might affect the quantity supplied (ceterus paribus assumption). Can we talk of supply of a commodity at any given point of time?
- 3. Supply Curve Why is the Supply curve upward sloping? What happens to Marginal Cost as we increase production? How are costs and production decisions related?
- 4. Key features of a Supply curve Shows a positive relationship between price and quantity supplied Is always upward sloping because as we go on increasing production the marginal cost also increases.
- 5. Marginal Cost Suppose you are opening up a Pizza hub with delivery service for free. You are based in downtown New Road. Would it make sense for you to cover Kathmandu city as a whole for your service? What would this do to your Marginal cost although it may mean larger market and thus, larger production?
- 6. Supply and its change If the price of noodles increases, what happens to its supply? The above is simply a Price effect along the supply curve.
- 7. Price effect Vs. Change in Supply Change in the supply curve takes place due to: Changes in the marginal cost of production Changes in the number of sellers or producers Changes in the expectations
- 8. Price elasticity of Supply Determining factors: How easy is it to change production in response to price? How fast can this be done? The quicker and easier it is for businesses to do this, the more elastic the product supply will be
- 9. Until we meet again Over the last decade, computer prices have been going down. Yet the supply of computers is ever increasing. Is this an exception to the Law of Supply? How can you explain this phenomenon? - One Paragraph with approximately 100 to 120 words. - Due Date: Tuesday, 28th August 2007
- 10. Until we meet again Over the last decade, computer prices have been going down. Yet the supply of computers is ever increasing. Is this an exception to the Law of Supply? How can you explain this phenomenon? - One Paragraph with approximately 100 to 120 words. - Due Date: Tuesday, 28th August 2007