Quantity Supplied
Quantity supplied is a term used in economics to describe the amount of a good or service that a producer is willing and able to provide to the market. It is the opposite of quantity demanded, which is the amount of a good or service that consumers are willing and able to purchase. The quantity supplied is determined by the price of the good or service, the cost of production, and the availability of resources. When the price of a good or service increases, the quantity supplied also increases, and vice versa.
History of Quantity Supplied
The concept of quantity supplied has been around since the early days of economics. It was first introduced by Adam Smith in his 1776 book, The Wealth of Nations. Smith argued that the price of a good or service is determined by the amount of labor and resources that are required to produce it. He also argued that the quantity supplied of a good or service is determined by the price that producers are willing to accept for it.
Since then, the concept of quantity supplied has been further developed by economists such as Alfred Marshall and John Maynard Keynes. Marshall argued that the quantity supplied of a good or service is determined by the cost of production, the availability of resources, and the price that producers are willing to accept for it. Keynes argued that the quantity supplied of a good or service is determined by the level of demand for it.
Table of Comparisons
| Price | Quantity Supplied |
|---|---|
| $10 | 100 units |
| $20 | 200 units |
| $30 | 300 units |
Summary
Quantity supplied is a term used in economics to describe the amount of a good or service that a producer is willing and able to provide to the market. It is determined by the price of the good or service, the cost of production, and the availability of resources. The concept of quantity supplied has been around since the early days of economics and has been further developed by economists such as Alfred Marshall and John Maynard Keynes. For more information about quantity supplied, you can visit websites such as Investopedia and the Federal Reserve Bank of St. Louis.
See Also
- Quantity Demanded
- Supply and Demand
- Price Elasticity of Supply
- Law of Supply
- Marginal Cost
- Average Cost
- Opportunity Cost
- Marginal Revenue
- Average Revenue
- Price Floor
