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Wednesday, July 24, 2013

PPT On Supply

Supply Presentation

Supply Presentation Transcript:

2.What is Supply?
The sellers' supply of goods also plays a role in determining market prices and quantities
Supply refers to the amount of goods and services firms or producers are willing and able to sell in the market at a possible price, at a particular point of time. schedule
A supply schedule is a table that shows the relationship between the price of a good and the quantity supplied. curve
A supply curve is a graph that illustrates that relationship listed in supply schedule.


6.Law of Supply
It states that when the price of a commodity rises, the supply for it also increases. The higher the price for the good or service the more it will be supplied in the market. The reason behind it is that more and more suppliers will be interested in supplying those good or service whose prices are rising.

7.According to the law of supply, a direct relationship exists between the price of a good and the quantity supplied of that good. As the price of good increases, sellers are willing to supply more of that good. The law of supply is also reflected in the upward-sloping supply curve

Cost of production is unchanged
No change in technique of production
Fixed scale of production
Govt policies are unchanged
No change in transport cost
No speculation
Prices of other goods are constant.

9.Factors affecting Supply
Price of the commodity
Prices of other commodities
Change in cost of production
Technological advancement
Number of sellers
 Expectation for future prices

10.Tax impact
An increase in corporate taxes increases input costs for the supplier.
A marginal tax on the sellers of a good will shift the supply curve to the left

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