law of supply

law of supply

If the price of something goes up, companies are willing (and able) to produce more of it.

law of supply

has a Direct relationship with price

law of supply

its motive is for Profit

supply

the amount of some good or service a producer is willing to supply at each price

price

is what the producer receives for selling one unit of a good or service.

law of supply

states that a higher price leads to a higher quantity supplied and that a lower price leads to a lower quantity supplied.

Supply Curve and Supply Schedule

are tools used to summarize the relationship between supply and price.

determinants of supply

are the variables that can alter or influence the supply of a commodity on the market

input

are resources that contribute to goods and services

price of inputs of production

If the Price of the input increases then your cost of production decreases which would decrease the supply of that production

input

includes raw material, labor and utilities.

technology

can enable companies to make and sell more products at a lower cost, thus increasing the available supply

Number of Suppliers

When more people are making a good, the supply increases

Government involvement

With the role to regulate and protect the industry, the Government has a great influence on the supply of a product.

Government involvement

The lower the tax, the higher the supply of that product. On the other hand, if strict regulations are imposed and the excise duty is added, the product's supply would fall off.

subsidies

the government wants the suppliers to produce more by giving them money to produce output or reduces firm taxes if firm carries out certain actions which would have a great influence in increasing the supply of a product

expectations

If the expected price of a good is greater than the current price, suppliers will hold back their goods so that they can sell them later at higher prices. This results in a drop of CURRENT supply.

supply function

a mathematical formula that depicts a relationship of the quantity supplied, price and other factors