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Concept of Supply

Theory of Topic - Concept of Supply

Supply word holds a very important place in subject of economics, it can be also said that it is one of the fundamental concept of the subject. Supply refers to the quantity of any goods or services which is available for the consumers. The supply is directly related to the demand which is also one of the fundamental topics of economics. If all other factors remain same then for any goods or services the supply will raise, if the price rises as the basic agenda of our firm is to get the maximum profit. The concept of supply is very important for the manufactures if any company as when the there is demand for a good and even the consumers are ready to pay more for it, any manufacture will increase the supply. As supply will increase, the price of good will fall; given the same level of demand. In ideal situations, the manufactures want the market to have an equilibrium stage where the demand is equal to supply for given price.

For anything which has demand there exist a supply. However in general the supply is used to denote the goods, services or labor. There are many factors which affect the supply, but in general the following factors play a major role in change in supply:

Price of good or service plays a major role in effecting the supply. If there is increase in price, the supply will increase unlike the demand. Even if there is speculation if chance in price in future, it impacts the supply al lot. For example if there is a news that the price of expensive commodity is about to reduce in future, it will make the supply increase at present or if there is news that a price of commodity is going to increase in future, then the supply of that product will be decreased. These are all done by the manufactures to get the high profit.

The supply of the product is also affected by the cost of production; if the cost of production of the good increases the supply of that product decreases. This is because the manufacturer will not get any profit if the cost of production of a good is more than its market price.

In case of mainly the goods, which are effected by climate, the climatic conditions also play as a factor in effecting supply. For example in case of agricultural goods the climatic conditions okay an important role in manufacturing and therefore in supply also.

If the product can be made using the advanced technology then for sure the supply of that product will be more.

The transport facility also plays a very crucial role which affects the supply. As easier transport will make way for manufactures to increase the supply.

To make a product, there are many things required; raw material, machines and so on. Therefore the prices of these things also impact the supply of good.

For a manufacture, it becomes easy to do manufacturing when various Government policies are in his favor. Thus the Government polices also impact the supply of the products.

Lastly the prices of related goods also affect the supply, as the manufactures have to deal accordingly to earn profit.

Problems Encountered In Solutions To  - Concept Of Supply

It is very common for students to face problems in assignments solving as due to current education al scenario, the students  are supposed to write lot of assignments. This in turn sometimes burdens them. This is also a case with concept of supply assignments. As a economic students the student is suppose to write a lot of assignments as economics is a theoretical subject as well as the numerical are also to be solved by the students. Therefore the students are supposed to dedicate ample of time for assignments solving. The students sometimes find it tough to understand the complexities of the topic. They also find it tough to solve the numerical problems. The topic of concept of supply requires the students to understand the graphs and analyze the market trend, which sometimes make it tough for the students. SO they require an expert guidance and vision of a trained person who can help them. The students have to analyze from the different point of view the various reasons which could affect the supply of the commodity. They are given case studies which require them to study the cases of changes in supply in relation to change in related factors.

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