Supply and its Determinants

supply and its determinants
what is supply
supply schedule
factors affecting supply
law of supply

1. Presentation on CONCEPT OF SUPPLY AND DETERMINANTS OF SUPPLY. SUBMITTED TO: SUBMITTED BY PROF . PRIYANKA KANKANE PRAVEEN PATEL AYUSH RIJWANI PIYUSH SINHA VIPIN PANDEY

2. Supply is the willingness and ability of producers to supply a particular quantity of a commodity at a particular price over a given period of time. Here Raamlal tells his manager about the prevailing price of Tea in the the market and accordingly the manager, changes the supply of tea. What is Supply?

3. Supply schedule and curve Price of Tea Quantity Supplied of Tea 5 10 10 20 15 30 PRICE QUANTITY SUPPLIED

4. Law of supply states that There is a direct relationship between price and quantity supplied of a commodity Quantity supplied rises as price rises , other things constant. Quantity supplied falls as price falls , other things constant.

5. What is law of supply. Law of Supply As the price of a product rises, producers will be willing to supply more of the Particular commodity. According to the scenario the Manager tends to increase the supply of Tea at higher prices and vice-versa. Quantity supplied Price

6. The supply curve The Supply Curve is the graphical representation of Supply Schedule. Price of Coffee Quantity supplied of Coffee 1 2 6 9 3 12 4 15 5 18

7. DETERMINANTS OF Supply Px - Price of the commodity Pr - Price of related goods Pf- price of factors of production G- Government Policy St- State of technology F- Number of firms S- Season and Weather E- Future Expecations

8. Shift in supply curve {changes in supply} Expansion/Contraction in supply curve occurs due to change in its own Price others factors Remaining constant.

9. Prices of Related Goods and Services Number Of Producers Expectations Of Producers Technology And Productivity Resource Prices Supply

10. Shift in supply curve There is a shift in Supply Curve {Rightward/Leftward shift} when there is a change in the supply of a commodity due to other factors, Price remaining Constant.

11. Elasticity of supply Elasticity of supply shows us the responsiveness of the quantity supplied to a change in its price. There are 5 types of elasticity of supply: Perfectly Elastic Supply

12. Perfectly Inelastic Supply

13. Highly Elastic Supply

14. Less Elastic Supply

15. Unitary Elastic Supply

16. THANKYOU PEOPLE.