Supply
Supply is an economic term that refers to the total amount of a particular good or service that is available to consumers. It is typically measured in terms of quantity and price. Supply is determined by the amount of a good or service that producers are willing to make available at a given price. The amount of supply is affected by the cost of production, the availability of resources, and the demand for the good or service.
History of Supply
The concept of supply has been around since the early days of economics. It was first introduced by Adam Smith in his 1776 book, An Inquiry into the Nature and Causes of the Wealth of Nations. Smith argued that the amount of a good or service that is available to consumers is determined by the amount of labor and capital that is used to produce it. He also argued that the price of a good or service is determined by the amount of labor and capital that is used to produce it.
Since Smith’s time, the concept of supply has been further developed by economists. In the 19th century, economists such as Alfred Marshall and Leon Walras developed the concept of supply and demand. They argued that the amount of a good or service that is available to consumers is determined by the interaction between the amount of supply and the amount of demand for the good or service.
Supply vs. Demand
| Supply | Demand |
|---|---|
| The amount of a good or service that is available to consumers. | The amount of a good or service that consumers are willing to purchase. |
| Determined by the cost of production, the availability of resources, and the demand for the good or service. | Determined by the price of the good or service, the availability of substitutes, and the income of consumers. |
| Affects the price of a good or service. | Affects the quantity of a good or service that is available to consumers. |
Summary
In summary, supply is an economic term that refers to the total amount of a particular good or service that is available to consumers. It is determined by the cost of production, the availability of resources, and the demand for the good or service. Supply and demand interact to determine the price and quantity of a good or service that is available to consumers. For more information about supply, you can visit websites such as Investopedia and The Balance.
See Also
- Demand
- Price
- Quantity
- Cost of Production
- Availability of Resources
- Demand for a Good or Service
- Price Elasticity of Demand
- Income Elasticity of Demand
- Substitutes
- Complements
