The document discusses the concepts of supply, the law of supply, market supply, and shifting supply curves. It provides examples to illustrate each concept. Supply is defined as the amount firms are willing to sell at a given price and time. The law of supply states that as price increases, quantity supplied increases, and vice versa. Market supply is the total quantity supplied by all suppliers in the market. The supply curve can shift left or right due to changes in costs of production or subsidies/taxes.

2. SUPPLY
“Supply of any good or service is the amount that firms are
prepared to sell under certain condition during a specified time
period.”
Explanation:
Suppose there’s a factory of garments producing shirts for the
other firm. Suppose the factory produced 10,000 shirts. But he
dispatches only 6,000 shirts. According to this case the supply
would be 6,000 not 10,000. 10,000 is the production of the factory
but the supply is 6,000 which is available to sale. The remaining
4,000 would be the stock for the factory.
LAW OF SUPPLY
“When the price of the product increases, supply also
increases. When the price of the product decreases, supply also
decreases.”
Why supply increases or decreases with the price accordingly?
Suppose we’re going to sell an ink pen at the price of $10 each.
But unfortunately, due to some economic problems or any other
problem, we’ve to decrease the price to $8. So then we’ll also
decrease our supply. Because we’re not receiving the profit
equivalent to the $10.
We can easily demonstrate it with the table and graph.
Schedule:
Combination Price Quantity
A $5 55
B $4 40
C $3 35
D $2 25
E $1 20
Explanation:
When we move our eye ball from top to bottom on the table, we
observes that the price is decreasing with quantity and at the
same time, when we move our eye ball from bottom to top, it
shows that the price is increasing with the quantity. That’s all

3. about the law of supply. Observe that when the price is $5,
quantity at this level is 55. Now we’ll move to the second row
where the price is $4 and the quantity supplied is 40. Now when
the price is $1 the quantity supplied is 20. It gives us the
information that when the price decreases, quantity of supply also
decreases. To learn the concept “Price increases, quantity
increases” we must go from bottom to top on the table.
Now we will draw the graph or diagram for the given table for
further demonstration.
MARKET SUPPLY
Market supply can be said as when there’re more than one
supplier in the market and supplying their goods. The total sum of
the quantity supplied by the supplier would be the “Market
Supply”.
It can be easily explain by the help of table and the graph.
Schedule:
Combination Price Supplier 1 Supplier 2 Market Supply
A $5 55 35 90
B $4 40 30 70
C $3 35 20 55
D $2 25 15 40
E $1 20 10 30
Explanation:
Now see that the supplier 1 is supplying the good at cost $5 with
the supply of 55. At same price, supplier 2 is supplying the same
product but his supply is 35. When we combine the supply of
supplier 1 and supplier 2, we get the sum of both the supplier
which is 90. This is actually the quantity of the product supplied in
the market. This concept is called “Market Supply.”
You can also observe that as the price of good decreases, the
supply is also decreasing.
We can also put the same table on the graph which is given
below.

4. Shifting Of Supply Curve:
When the supply curve shifts to another side without changing in
price is called “Shifting Of Supply Curve”.
It can be easily demonstrated by the help of graph.
Why Supply Curve Shifts?
When the cost of a product increases, the supply curve shifts to
the left side. When the cost of a product decreases, the supply
curve shifts to the right side.
There may be different factors.
1. Cost of raw material
2. Technology and productivity
3. Taxes
4. *Subsidies.
*A negative tax, a payment to a producer from the government usually in a form of cash
grant.