Supply

Supply

The desire to supply certain quantities of a good or service at various prices over a particular period of time

Law of supply

Price increases so does supply, price falls so does supply

Restrictive capacity

Situation where the production capacity of a firm or service is limited by certain constraints preventing it from producing more goods or services even if there is demand

What constraints restrict capacity

Limited resources, regulatory constraints, technological limitations, infrastructure issues

Limited resources

Shortage of raw materials, labour or capital

Regulatory constraints

Government regulations or policies that limit production

Technological limitations

Outdated or inefficient technology that restricts output

Infrastructure issues

Inadequate infrastructure such as transportation or energy supply