Supply

Question 1

What is Supply?

Answer 1

The willingness and ability of producers to supply a good at a certain price point.

Question 2

What is law of supply?

Answer 2

The more the price the more the quantity supplied.

Question 3

What is the factor determining quantity supplied?

Answer 3

Price

Question 4

How to achieve market supply?

Answer 4

Horizontal summations of all the supply curves at a fixed price point.

Question 5

What are the factors causing shift in supply curve?

Answer 5

1) Reduction/Increase in price of the factors of production/ raw materials ( Capital, labor wages, land (raw materials, enterprise ( entrepreneur wage) )
2) Government taxes on products (increase production cost)
3) Technical progress ( more efficiency)
4) Motivated Labor
5) Increase in Labor
6) Natural Calamities ( especially agriculture products)
7) Number of suppliers (If number of suppliers for a specific product in the market increases, supply of the good also
increases and supply curve shifts rightwards. On the other hand, if number of suppliers reduces
in the market, supply of the good also decreases and supply curve shifts leftwards.)