Supply
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| Supply | refers to the quantity of a good that firms are willing to make available at various prices over a particular period of time.
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| Individual supply | refers to the quantity of a good an individual firm is willing to supply at different prices.
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| Market/aggregate supply | refers to the total quantity of a good that all the firms are willing to supply at different prices.
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| A supply schedule | is a table illustrating the different quantities of a good made available for sale at various market prices at any given time.
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| An individual supply schedule | is a table illustrating the different quantities of a good made available for sale by an individual firm at various market prices at any given time.
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| A market/aggregate supply schedule | is a table illustrating the total quantities of a good that all the firms in the market are willing to make available for sale at various prices at any given time.
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| A supply curve | is a graph illustrating the number of units of a good made available for sale at various market prices at any given time. There is a positive relationship between price and quantity supplied. The supply curve is usually upward sloping left to right.
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| An individual supply curve | is a graph illustrating the different quantities of a good made available for sale by an individual form at various market prices at any given time.
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| A market/aggregate supply curve | is a graph illustrating the total quantities of a good all the firms in the market are willing to make available for sale at various prices at any given time.
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| To derive market supply | we add the quantity supplied by each individual firm at each price to calculate the overall quantity supplied to the market at each price.
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| Other circumstance of Supply | Supply restricted by a minimum market price, Supply restricted by limited capacity,Fixed supply (Perfectly inelastic supply).
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| A movement along the supply curve is caused by | a change in price of the good or service.
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| A shift in the supply curve is caused by | a change in any non-determinant of supply (any other variable that influences the quantity supplied).
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| Increase in supply | indicated by a shift to the right.
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| Decrease in supply | indicated by a shift to the left.
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| Factors affecting the supply of a good | It's own price, Price of related goods,Cost of production, Factors outside the control of a firm/unforeseen circumstances, State of technology, Rates of taxation/granting of subsidies,Objectives of the firm,Number of sellers in the industry.
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| Supply function | Sy = f(Py, Pr, C, U, Tch, Tx, O, N)
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| Py | Price of good Y.
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| Pr | Price of related goods.
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| C | Cost of production.
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| U | Factors outside the control of the firm.
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| Tch | State of technology.
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| Tx | Taxation/subsidy.
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| O | Objectives of the firm.
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| N | Number of firms in the industry.
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| Producer surplus | is the difference between the lowest price a supplier is willing to accept for a good and the price they actually receive.
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| Jean Baptise Say (1767-1832) | Says law-'Supply creates it's own demand'
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| Says law-'Supply creates it's own demand' | People work to acquire needs/wants,Specialisation of labour,Production creates demand,Savings decrease interest rates,Self-adjusting system.
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| Says analysis failed to explain | how a deficiency in aggregate demand could cause unemployment.
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