Define Supply . What are the various factors that determine it.
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In economics, supply during a given period of time means, the quantities of goods which are offered for sale at particular prices.
The supply of a commodity is the amount of the commodity which the sellers or producers are able and willing to offer for sale at a particular price, during a certain period of time.
Important factors are as follows:
1. Price of the Commodity:
Price is the most important factor influencing the supply of a commodity. More is supplied at a lower price and less is supplied at a higher price.
2. Seller’s Expectations about the Future Price:
Seller’s expectations about the future price affect the supply. If a seller expects the price to rise in the future, he will withhold his stock at present and so there will be less supply now. Besides change in price, change in the supply may be in the form of increase or decrease in supply.
3. Nature of Goods:
The supply of every perishable goods is perfectly inelastic in a market period because the entire stock of such goods must be disposed of within a very short period, whatsoever may be the price. If not, they might get rotten. Further, if the stock of goods can be easily stored its supply would be relatively elastic and vice-versa.
4. Natural Conditions:
The supply of some commodities, such as agricultural products depends on the natural environment or climatic conditions like—rainfall, temperature etc. A change in the natural conditions will cause a change in the supply.
5. Transport Conditions:
Difficulties in transport may cause a temporary decrease in supply as goods cannot be brought in time to the market place. So even at the rising prices, quantity supplied cannot be increased.
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The supply of a commodity is the amount of the commodity which the sellers or producers are able and willing to offer for sale at a particular price, during a certain period of time.
Important factors are as follows:
1. Price of the Commodity:
Price is the most important factor influencing the supply of a commodity. More is supplied at a lower price and less is supplied at a higher price.
2. Seller’s Expectations about the Future Price:
Seller’s expectations about the future price affect the supply. If a seller expects the price to rise in the future, he will withhold his stock at present and so there will be less supply now. Besides change in price, change in the supply may be in the form of increase or decrease in supply.
3. Nature of Goods:
The supply of every perishable goods is perfectly inelastic in a market period because the entire stock of such goods must be disposed of within a very short period, whatsoever may be the price. If not, they might get rotten. Further, if the stock of goods can be easily stored its supply would be relatively elastic and vice-versa.
4. Natural Conditions:
The supply of some commodities, such as agricultural products depends on the natural environment or climatic conditions like—rainfall, temperature etc. A change in the natural conditions will cause a change in the supply.
5. Transport Conditions:
Difficulties in transport may cause a temporary decrease in supply as goods cannot be brought in time to the market place. So even at the rising prices, quantity supplied cannot be increased.
Hope this will help you and
If you understand then please give a brilliant answer ☺☺follow me
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♥♥♥hoLa...!!...here is your answer
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It refers to how the ammount supplied of a good or service changes is response to a price or factor change.There are several factors that affect the supply elasticity of a good or service,such aa the avalablity of resources,innovation of technology nd the ammount of producers...!
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""""">>>>>>>----------<<<<<<<<
It refers to how the ammount supplied of a good or service changes is response to a price or factor change.There are several factors that affect the supply elasticity of a good or service,such aa the avalablity of resources,innovation of technology nd the ammount of producers...!
>>>>>>>>>>♥♥♥♥<<<<<<<<<<
H O P E
T H I S
W I L L
H E L P....
♥♥♥mark as brainliest
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