Supply

Supply is ?

amount of goods or services that a producer is willing and able to offer the market at various prices over a certain period of time.

Factors Affecting supply (Determinants of supply)

1. Price of the good (Px) - direct relation

2. Price of related (competitive) good (Pr) - inverse relation

3. Cost of factors of production (F) - Inverse relation due to increased production costs affecting supply.

4. Technology (T) - advanced technology can increase supply ; obsolete technology can reduce supply. - No relation

5. Other Factors (O)

Price elasticity of supply (Es)

Es is always positive. All formulaes and all degrees are same as demand.

Q - is it possible that elasticity on same supply curve is not constant ?

Yes, it is possible because elasticity can vary along a supply curve due to changes in price and quantity.