Business Economics this ppt contents abut bussines.pptx

Business Economics

1. UNDERSTANDING SUPPLY IN ECONOMICS (CONCEPTS, TYPES & LAW) BY: TECH. PYTHON

2. INTRODUCTION MEANING: Supply refers to the quantity of a good or service that producers are willing and able to offer for sale at various prices during a given period of time. IMPORTANCE: Supply is a fundamental concept in economics, determining the availability of goods and services in the market. Understanding supply helps in analyzing market dynamics, pricing mechanisms, and resource allocation, which are crucial for making informed decisions in business, policy-making, and economic management.

3. CONCEPT OF SUPPLY DEFINITION: According to Prof. Thomas, “The Supply of Goods is the Quantity offered for Sale in a given market at a given time at various Prices.” FACTORS AFFECTING SUPPLY: Price of the Commodity Nature of Goods Transport Conditions Natural Factors Future Price Expectations Technology Government’s Policy

4. TYPES OF SUPPLY 1. Individual Supply Individual Producer. Various Prices during a given time period. 2 . Market Supply Aggregate Supply in the entire market. 3. Short-Run Supply Produced and Supplied in a short term. Some factors of production may be fixed or limited. 4. Long-Run Supply All factors of production can be varied or adjusted. 5. Firm Supply Individual Firm willing to produce and offer. 6. Industry Supply Goods or services supplied by all firms operating within a particular industry or sector.

5. LAW OF SUPPLY STATEMENT OF LAW OF SUPPLY: Other things being constant, higher the price of a commodity, more is the quantity supplied and lower the price of a commodity less is the quantity supplied. There is a Direct Relationship between Price & Quantity Supplied. Thus, = Where, S= Supply x= Commodity f= Function P= Price of the Commodity  

6. ASSUMPTION OF THE LAW OF SUPPLY The price of substitutes goods remain constant. There is no change in cost of production. There is no change in the technology and method of production. Government policies on taxation remain unchanged. Weather and climatic conditions remain unchanged. Transport cost remains unchanged. No change in Promotional activities.

7. SUPPLY SCHEDULE A supply schedule in economics is a tabular representation of the quantity of a good or service producers are willing to supply at different price levels. Individual Supply Schedule Price (₹) of Commodity X Quantity Supplied (per kg) Commodity X 1 10 2 30 3 50 4 70 5 80 As the Price Increases, the Quantity Supplied also Increase.

8. SUPPLY SCHEDULE 2. Market Supply Schedule Price of Commodity ‘X’ (₹) Supply by Seller A Supply by Seller B Market Supply (Units) (A+B) 100 40 50 45+50 = 90 200 60 70 60+70 = 130 300 65 80 65+80 = 145 400 80 100 80+100 = 180 As the Price Increases, the Quantity Supplied Increases.

9. SUPPLY CURVE

10. EXCEPTIONS TO THE LAW OF SUPPLY Agricultural Goods Artistic Goods Goods for Auctions Expectation of Change in Price Supply of Labour Perishable Goods Out of Fashion Urgent Need for Money

11. CONCLUSION - Understanding the concept of supply, its types, and the law of supply offers valuable insights into market dynamics and producer behavior. - Analysis of supply helps in making informed business decisions, formulating effective policies, and predicting economic trends. - Exceptions and assumptions within the law of supply highlight the complexity of real-world economic interactions and the importance of considering context and market conditions. - Applying these principles fosters sustainable growth, drives innovation, and promotes prosperity in the global economy.

12. THANK YOU!