Supply

Introduction Amount offered for sale at given price Price and Point of Time Direct relationship between supply and price Stock and Supply The terms stock implies a fixed quantity while the term supply implies that amount offered can be increased or decreased Supply refers to that part of stock which is actually offered for sale at given price in the market at given time

The Law of Supply Functional relationship between price and the quantity offered for sale The law of supply states that, other things remaining the constant, higher the price the greater will be the willingness of sellers to make a product available

Supply Schedule

Market Supply Curve

Factors Determining The Supply of a Commodity Objective of the firm State of Technology Political Disturbance Government Policy Future Price Expectations Industrial Peace Natural Factors Price of Factors of Production Price of Good which is to be supplied Price of other goods Number of firms or sellers The Entry of New Firms Discovery of New Raw Materials Development of Transportation Business Combinations

Exceptions of the Law of Supply Expectations of a fall in price Sellers who are in need of cash When leaving the industry Agriculture output Backward Sloping supply curve of labour

Extension and Contraction of Supply

Increase and Decrease in Supply

Demand Supply Equilibrium Equilibrium Price Equilibrium Quantity Market Equilibrium Demand = Supply

Changes in Demand and Supply

Perishable Commodities

Demand and Supply of Consumer Durables

Durable Commodities : Reservation Price Durability of the Commodity Future Price Liquidity Preference Storage Expenses Future Demand Future Cost of Production Time for New Supply Past Cost

Short Run and Long Run Price Determination

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