The quantity of a commodity that sellers are willing to sell at a particular price is called supply. As if the supply of an item is directly related to the employer and the manufacturer. Therefore, in order to earn more profit, the seller increases the supply of the product as the price increases and reduces the supply of the product when the price decreases.
The behavior of the sellers of goods that they adopt by increasing or decreasing the supply of goods with the change in price is not given.
For example, if 50 kg of sugar is brought to the market for sale at $1 per kg, then this quantity of sugar is called supply.
In simple words Supply is
The quantity of a commodity that is sold in the market at a particular price in a particular period.
The following points must be kept in mind to understand the meaning of supply.
The delivery of an item is always associated with a specific time. It is difficult to accurately estimate supply without price. For example, we cannot say how much sugar employers are willing to sell without mentioning the price. Therefore, to estimate the supply of sugar correctly, it is necessary to say that when the price increases, the supply of sugar increases; on the contrary, when the price is low, the supply decreases.
Delivery of an item is always determined by time. For example, last week the price of sugar was 1$ per kg and this week the price of sugar has been fixed at 1.1$ per kg.
There is a direct relationship between the price and supply of a commodity, that is, when the price of a commodity increases, the supply of that commodity also increases, and when the price decreases, the supply of the commodity is also reduced.
A price below which sellers refuse to sell goods is called Reserve Price.
Stocks refers to that part of the total production of a commodity that traders or sellers keep in their warehouses, shops or factories for a specific period of time. For example, if a trader has 500 kg of sugar in the warehouse and does not bring it to the market for sale, then this amount of sugar will be called stock.
Whereas in economic terms, supply refers to the quantity of a commodity that is sold at a particular price in a particular period and brought to the market. For example, if 200 kg of sugar is brought to the market for sale at $1 per kg, then this quantity of sugar will be called supply. Hence supply of a commodity is always associated with price whereas price is not necessary to estimate inventory.
Kinds of Supply:
There are three types of supply.
Market Period Supply:
The quantity of a commodity that is available for sale in the market at a particular price for a particular period is called market supply. In the case of market supply, despite the increase in the price of the commodity, the supply cannot be increased because it takes a lot of time to increase the supply of the commodity. For example, if 200 kg of fish is brought to the market, it is difficult to increase the supply of fish immediately despite the increase in price. Because it takes time to supply the excess amount of fish in the market.
Short Period Supply:
The short-term supply can be increased or decreased to a certain extent to meet the demand requirements of the commodity. Businesses that engage in production for a short period of time such as ice factories (in hot regions), ice cream factories etc. If the price of ice and ice cream increases temporarily, the said factories and factories can speed up their production process and increase the production. Similarly, when the price decreases, the supply can be reduced.
Long Period Supply:
When the supply of a product is stable for a long period of time and despite the increase in the price, the increase in the demand for the product is permanent, then considering the excess demand, the employers would start efforts to increase the productivity of the same industry. are so that they can earn extraordinary profits. The period of the mentioned industries is so long that during this period many industrialists also adopt such industry to get extraordinary profits. It should be remembered that after a certain period due to the opening of many industries, the price returns to its normal due to the immense increase in the supply of the commodity. In this way, the supply in the long run can be easily adjusted according to the demand.
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