2.3: Supply

• Supply


  Quantities of a product that suppliers are willing and able to sell at various prices per period of time, ceteris paribus
• Relationship between price and quantity supplied

  Positive, as price increases quantity increases and vice versa
• Individual supply


  Supply of an individual producer at each price
• Market supply


  Sum of all the supplies of all sellers
• Joint supply


  Where a firm produces more than one product together
• Competitive supply


  A situation in which a firm can use its factors of production to produce alternative products
• Extension of the supply curve

  Rise in price
• Contraction of the supply curve

  Fall in price
• Cause of a shift in the supply curve

  Determinants of supply
• Cause of a movement along the supply curve

  Change in price
• Determinants of supply


  Production cost, profitability of other items, expectations of future prices, technology