Supply — Flashcards

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Production is the quantity of goods created by the available factors of production during a fixed time period. It represents the total output manufactured by a producer using land, labor, capital, and…

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Supply is that amount of production which a producer is able and willing to sell in the market at a given price and at a particular point of time. It depends on both ability and willingness to sell.

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Stock is the total available amount of goods with a producer which can be offered for sale in the market as per the ability and willingness of the seller. Stock represents the complete inventory avail…

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Stock is the total available quantity of goods, while Supply is the portion of stock that a producer is able and willing to sell at a given price. Supply ≤ Stock. When a trader has 500 packets but is …

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The two main categories of factors affecting supply are: 1. Price of the product itself 2. Factors other than price (cost of production, technology, future price expectations, number of sellers, gover…

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When prices of factors of production (wages, rent, interest) decrease, cost of production falls, profits increase, and supply expands. When factor prices increase, cost rises, profits fall, and supply…

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Advanced technology reduces production time and costs, allowing greater production at lower costs. This increases profits at the same price, encouraging producers to supply more. Better technology lea…

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If sellers expect prices to rise in the future, they will reduce current supply to build stock for future sales at higher prices. If they expect prices to fall, they will increase current supply to se…