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SUPPLY

SUPPLY. Supply Law of Supply Determinants of Supply Equilibrium Surplus and Shortage. Supply. The total amount or quantity of a good or product that producers are willing and able to sell at various prices (Schiller)

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SUPPLY

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  1. SUPPLY Supply Law of Supply Determinants of Supply Equilibrium Surplus and Shortage Prepared By Ali Siddiqi

  2. Supply • The total amount or quantity of a good or product that producers are willing and able to sell at various prices (Schiller) • The total amount of output of goods and services in an economy (Sloman) Prepared By Ali Siddiqi

  3. Law of Supply • Different Prices=Different Demand • Different Prices=Different Supply • Law of Demand: As the prices increase…. • Law of Supply: As the price of the product or service increases…suppliers will supply more. Prepared By Ali Siddiqi

  4. Supply Schedule • Supply Schedule is a table showing the different quantities supplied at different prices Prepared By Ali Siddiqi

  5. Supply Curve • A graph showing the relationship between the price of goods and the quantity of the good supplied over a period of time • Upward sloping • Positively Slopped Prepared By Ali Siddiqi

  6. Market supply of potatoes (monthly) e Supply d P 20 40 60 80 100 Q 100 200 350 530 700 a b c d e c Price (pence per kg) b a Quantity (tonnes: 000s)

  7. Changes in Supply • Capacity and technology • Cost of production • Random Events “Shocks” • Expectations of Future Prices • Prices of Substitutes and Compliments Prepared By Ali Siddiqi

  8. Equilibrium: Mr. Demand, Meet Mr. Supply • This is the point where supply equals demand. • At this point suppliers are supplying the same amount of products as demanded. • Agreement point Prepared By Ali Siddiqi

  9. Surplus and Shortage • On Board Prepared By Ali Siddiqi

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