![]() ![]() These are classified as the movement along the supply curve and shift in the supply curve. The changes in price and factors other than price have varying consequences on the curve. Interestingly, the incidence of the alterations in determinants of supply is also categorized into two. We classified the determinants of supply into two categories- price and factors other than price. An alteration of any of these factors has effects on the supply curve. We are now aware of the various determinants of supply curves. In essence, a supply curve can also be understood as the graphical counterpart of a supply schedule. A supply schedule is the tabular statement of the various quantities of a commodity that a firm is willing and able to sell at various levels of price during a given period of time. Alternatively, supply curves are also the graphical representation of supply schedules. One can simply look at the supply curves of two firms and distinguish between them. The shape of the curve points out the characteristics of a firm.Īlso, a supply curve is a good measure of comparison. This indicates the direct relationship between the quantity of a commodity supplied and its price, keeping other factors constant. Unlike a demand curve, supply curve slopes upwards. The supply curve is the locus of all the points showing various quantities of a commodity that a producer is willing to sell at various levels of prices, during a given period of time, assuming no change in other factors. Observe that this definition has four essential dimensions- quantity of a commodity, willingness to sell, price of commodity and period of time. Technically, supply refers to the quantity of a commodity that a firm is willing and able to supply at a given period of time, at a given price. ![]()
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