PRINCIPLES OF ECONOMICS
INTRODUCTION TO THE PRINCIPLES OF ECONOMIC
Political Economy or Economics is a study of mankind in the ordinary business of life; it examines that part of individual and social action which is most closely connected with the attainment and with the use of the material requisites of wellbeing.
3. Supply
3.2. Concepts of supply
Key concepts related to supply include:
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Law of Supply: This principle states that, all else being equal, an increase in price leads to an increase in the quantity supplied. Conversely, a decrease in price results in a decrease in the quantity supplied.
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Supply Curve: This is a graphical representation of the relationship between the price of a good and the quantity supplied. It typically slopes upward, reflecting the law of supply.
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Factors Influencing Supply: Several factors can affect supply, including production costs, technology, number of suppliers, and government policies (like taxes or subsidies).
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Market Supply: This is the total supply of a good or service from all producers in the market, often represented by the sum of individual supply curves.