THEORY OF
SUPPLY
, TOPIC LEARNING
OUTCOMES
At the end of this topic, student should
be
able to:
1. To explain supply theories
2. To draw supply curve
3. To explain determinants of supply
4. To explain exceptional supply
, DEFINITION AND LAW OF SUPPLY
• Supply is the amount of a particular product or
service that a firm would be willing and able to
sell at a particular price during a given period of
time, ceteris paribus.
• Law of Supply: Price of a good and the quantity of
the good supplied are positively related.
• When price falls, quantity supplied also falls
and vice versa or the higher the price, the greater
will be the quantity supplied
• P Qs
• Supply curve is positively sloped because when
price increases, the quantity supplied decreases.
SUPPLY
, TOPIC LEARNING
OUTCOMES
At the end of this topic, student should
be
able to:
1. To explain supply theories
2. To draw supply curve
3. To explain determinants of supply
4. To explain exceptional supply
, DEFINITION AND LAW OF SUPPLY
• Supply is the amount of a particular product or
service that a firm would be willing and able to
sell at a particular price during a given period of
time, ceteris paribus.
• Law of Supply: Price of a good and the quantity of
the good supplied are positively related.
• When price falls, quantity supplied also falls
and vice versa or the higher the price, the greater
will be the quantity supplied
• P Qs
• Supply curve is positively sloped because when
price increases, the quantity supplied decreases.
