supply

• Supply means being willing and able to sell a good
• As price rises so does QS
• Price rise= extension is supply
• Prise decreases= contraction in supply
• PES calculation?


  change in QS% divided by change in price%
• ALL PES = positive
• Pes elastic means QS is very responsive to p
• FACTORS influencing pes:

  1. T- time
  2. E-economy
  3. A-availability of FOP
  4. S-space capacity
  5. S- stock and perishability
• Causes for shifts in supply

  • weather
  • technology
  • productivity
• Price change in supply = extension or contraction
• short run supply = inelastic suplly
• long-run supply= elastic
• Bad state of economy= elastic supply ( more factors are available)
• Joint supply two or more goods they make a product
• Individual supply= producers supply of a good/ service
• market supply= all producer's supplies to the market summed together
• Higher prices motivate firms to supply more due to profit maximisation