Supply
Definition
Supply refers to the quantity of a good or service that producers are willing and able to offer for sale at various prices during a given time period.
Analogy
Think of supply as a buffet. The more food (goods or services) available at the buffet, the higher the supply. If there is less food available, the supply decreases.
Related terms
Quantity Supplied: This term refers to the specific amount of a good or service that producers are willing and able to sell at a particular price.
Law of Supply: The law of supply states that there is a direct relationship between price and quantity supplied. As prices increase, producers are willing to supply more goods or services.
Producer Surplus: Producer surplus is the difference between what producers receive from selling their goods or services and what they were willing to accept for those goods or services.
"Supply" appears in:
Subjects (1)
Study guides (1)
Practice Questions (6)
What is supply?
If the government imposes a subsidy on a good, what is the likely effect on the supply?
What happens to the supply of a good if there is an increase in the number of sellers in the market?
If a company expects a recession in the future, what is likely to happen to the supply of its goods?
A company introduces a new production technology that significantly reduces the amount of labor required to produce a good. How is this likely to impact the supply of the product?
When both demand and supply are relatively elastic, what happens to the tax burden?
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