In economic terms, what is supply?

2 Answers | Add Yours

pohnpei397's profile pic

pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted on

The definition you give here is not quite right.  What you are describing is the quantity supplied.

The supply of a product is the amount of that product that suppliers are willing and able to produce at every price point.  In other words, supply is a relationship between price and quantity and is represented graphically by a line, not by a single point.  The law of supply states that there is a direct relationship between price and quantity supplied.  That is, (all other things being equal) producers will be willing and able to produce more of a product as the price of the product (that they get when they sell it) rises.

nkavamajr's profile pic

nkavamajr | Student, College Freshman | eNotes Newbie

Posted on

means quantity of acommodity which is offered for sale at agiven price and time

We’ve answered 317,805 questions. We can answer yours, too.

Ask a question