Supply :-

The term supply refers to the amount offered for sale at a definite price during a certain period of time. In other words, the word "supply" implies the various quantities of a commodity offered for sale by producers during a given period of time at various prices.

Law of supply :-

The law of supply shows the functional relationship between price and quality offered for sale. The law of supply states that as the price of a commodity increases the of that said commodity increases and when price decreases the supply decreases. Thus, supply has a direct relation with the price of the product.

Assumptions of the law of Supply :-

1. There is no change in the price of related goods.

2. There is no change in the state of technology.

3. There is no change in the goals of the firms.

4. Prices of factors of productions do not change.

5. Producers do not expect any changes in the price of the product in near future.

Determinants of Supply -

a. Price of the Good and Service.

b. Price of Related Goods. ...

c. Price of the Factors of Production. ...

d. State of Technology. ...

e. Government Policy. ...

f. Other Factors, like unit tax on commodity.

Supply Schedules - The supply schedule represents the relation or function between quatities of the commodity that the people are willing to produce and sell at different prices at a given period of time. Thus the list showing the quantities of the commodity that the producer or seller are willing to sell in the market at different prices is known as the supply schedules.

The table given above shows that when per unit declined from Rs. 425 to Rs. 375, the number of units supplied decreases from 500 to 400. Likewise, when the price per unit declined to Rs. 225, the amount supplied also decreases to 100 units.

Individual Supply Schedule:-

The individual supply schedule refers to the different quantities supplied by the seller at different prices during a particular period of time.

Market Supply Schedule:-

Market supply schedule refers to the various quantities of the commodity that all sellers are willing to supply at different prices during a particular period of time.

Supply Curve - The supply curve represents how with the changes in the price of a commodity supply of that commodity changes. The supply curve is a geometrical representation of the supply schedule.

In the diagram given above the OX axis represents the numbers of units supplied and the OY axis represents the price of the commodity. S is the supply curve which is a upward rising curve which implies that as the price of the commodity increases the supply also increases and vice versa. Hence the supply curve slopes upwards from left to right.

Individual Supply Curve:-

An individual supply curve refers to the curve that should various quantities of a given commodity which a seller is willing to supply at different prices during a given period of time.

Market Supply Curve:-

Market supply curve refers to the curve that shows various quantities of a given commodity which all the seller in the market are willing to sell at different prices during a given period of time.

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