Supply

• Supply ?

  The amount of a good or service that producers are willing and able to sell at any given price.
• What are producers ?

  people that create and supply good and services to a market.
• Determinants of supply

  •Price

  •Technology

  •Entry and exit of firms

  •Taxes or subsidies

  •Production Cost

  •External shocks
• Price??

  Main determinant of supple, if price is not appealing to all stakeholders then there will not be much supply.
• Technology??

  Technological progress has meant that firms can produce in a more efficient and cost-effective manner.

  AS TECHNOLOGY IMPROVES FIRMS FIND IT PROFITABLE TO SUPPLY MORE PRODUCTS.
• Entry and exit of firms

  If a product is in fashion there will be more supply however exist of firms will lead to no supply.
• Taxes or subsidies

  •Indirect taxes make it more expensive to produce a product, therefore, the quantity supplied of that product will decrease.

  •Subsidies will make it cheaper to produce a product, therefore, the quantity supplied of that product will increase.
• What is a subsidy?

  A payment by the government to supplies that reduce their costs of production and encourages them to increase output.
• Production cost??

  If cost increases for a production of a good or service this will make it more expensive leading to suppliers reducing output.
• External Shocks??

  Sudden events or developments that impact the economy could lead to another an increase in supplier output or decrease depending on the circumstance.