Supply

• Law of Supply


  The law of supply states that as the price of a good increases, the quantity supplied also increases, and vice versa.
• Quantity Supplied


  The amount of a product or service that producers are willing and able to produce and sell at a given price level and during a specific period of time.
• Supply Curve


  A graphical representation of the relationship between the price of a good and the quantity supplied, showing how the quantity supplied changes as the price increases.
• Tableau of Demand and Supply

  A diagram showing the intersection of the demand curve and the supply curve, resulting in the equilibrium price and quantity.
• Price of related goods

  The price of complementary or substitute goods can affect the supply of a product (e.g. increase in the price of a substitute good can lead to an increase in the supply of the original product).
• Production costs


  Changes in production costs, such as raw materials or labor costs, can influence the supply of a product (e.g. increase in production costs can lead to a decrease in supply).
• Technological advancements


  Improvements in technology can increase or decrease the supply of a product, depending on the specific changes (e.g. automation can increase supply, while obsolescence can decrease it).
• Government policies


  Taxes, subsidies, and regulations can all impact the supply of a product (e.g. increased taxes can decrease supply, while subsidies can increase it).
• Weather and natural disasters

  Extreme weather conditions or natural disasters can disrupt production and affect the supply of a product (e.g. flood can damage production facilities, leading to a decrease in supply).
• Consumer preferences


  Shifts in consumer preferences can lead to changes in demand, which can in turn affect supply (e.g. increase in demand for sustainable products can lead to an increase in supply).
• Expectations of future prices

  Producers may adjust their supply based on their expectations of future prices (e.g. if they expect prices to rise, they may decrease supply).
• Capacity utilization


  The percentage of a producer's capacity that is used can affect the supply of a product (e.g. if capacity is underutilized, supply may increase to use up excess capacity).
• Entrepreneurial expectations


  The expectations of entrepreneurs, such as the profit expectations, can influence their decisions to supply goods and services (e.g. if they expect high profits, they may increase supply).
• Supply Schedule


  A table showing the relationship between the price of a good and the quantity supplied, including the initial price and quantity, and any changes in production costs or government policies that affect supply.
• Factors that influence supply

  A list of factors that can affect the quantity supplied, including changes in production costs, technology, government policies, weather and natural disasters, and consumer preferences.
• Price and Quantity Supplied

  A coordinate plane showing the relationship between the price of a good and the quantity supplied, with price on the y-axis and quantity supplied on the x-axis.
• Upward-Sloping Supply Curve


  A supply curve that shows how the quantity supplied increases as the price increases, indicating a positive relationship between price and quantity supplied.
• Changes in Production Costs

  Changes in production costs can affect the supply of a good, with an increase in costs potentially leading to a decrease in supply, and a decrease in costs potentially leading to an increase in supply.
• Government Policies and Supply

  Government policies, such as taxes or subsidies, can affect the supply of a good, with a tax potentially leading to a decrease in supply and a subsidy potentially leading to an increase in supply.
• Supply Curve Shift:


  A change in the entire supply curve, affecting all prices and quantities supplied.
• Cause of Shift:

  Changes in production costs, technology, government policies, or expectations of future prices can cause a shift in the supply curve.
• Effect on Supply:

  A shift in the supply curve will change the entire supply schedule, resulting in a new equilibrium price and quantity supplied.
• Movement Along Supply:


  A change in the quantity supplied at a given price, while the supply curve remains unchanged.
• Cause of Movement:

  A change in production costs, technology, or government policies at a given price can cause a movement along the supply curve.
• Effect on Supply:


  Movement along the supply curve will change the quantity supplied at a given price, but the supply curve as a whole remains unchanged.