Learn with steem||The theory of Supply @beetees

INTRODUCTION

Hello steemians,

The concept and theory of demand often leads to supply, the supply of the goods demanded by consumers and you can not talk about demand without supply because if there is demand, there must be supply.

After this lesson, my steemit friends should have the knowledge of the following;

• The meaning of Supply
• Law of supply
• Supply schedule and curve
• Factors that affects supply

MEANING OF SUPPLY

Supply is the amount or quantity of goods a manufacturer or producer is willing and able to sell to his consumers. There has to be first a demand for the goods, next, the manufacturer must have the goods available, next, the willingness, and, finally, the ability to sell the goods.

Sometimes, when a consumer demands a certain quantity of goods, there is no guarantee that he will get the exact quantity of goods demanded in the market or supplied to his shop or company or warehouse.

The supplier may be willing but unable to sell the goods due to factors like difference in prices, negotiation, etc.

THE LAW OF SUPPLY

Just like the law of demand, it is always same any where as long as economics is concerned.

"The law of supply states that the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.” —The law of supply

This means that a manufacturer supplies more when the price of his commodity is high in the market because he wants to make more profit. When the price is low, he sells less because he wants to hoard the some goods to them sell when the price goes high.

SUPPLY SCHEDULE AND CURVE

Supply schedule is the relationship between the price of goods at a certain period of time and the quantity of goods supplied at that same time.

Supply curve is a graphical presentation that shows the relationship mentioned above.

For instance, the table below shows the relationship between the price of STEEM
and quantity supplied per week.

Price per steem (naira)	quantity of steem supplied
500	50
250	35
150	20
100	5

You can see that according for the law of supply, the quantity supplied kept on reducing as the price of STEEM decreased.

This is the supply curve for the supply schedule showing the relationship between the price of steem and the quantity supplied. The supply curve has a downslope, it is the reverse of the demand curve.

FACTORS THAT AFFECTS SUPPLY.

These are the factors that affects the flunctuation of the quantity of goods supplied.

• Price
• Price of other commodities
• Cost of production
• Number of producers
• Weather
• Labour
• New technological equipment

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Price: The higher the price of goods, the higher the quantity supplied.

Price of other commodities: The price of a commodities affects the quantitybofbother commodities to be supplied by either increasing or decreasing.

Cost of production: When the cost of producing a commodity increases, the producer will tend to produce less goods thereby decrease the quantity supplied.

Number of producers:When the number of producers in the market increases, the quantity supplied will increase and vice versa.

Weather: Just the same way weather affects demand, it does same to supply. When the weather is favourable to the production of some commodities, there will be increase in supply of that commodity.

Labour: Increment in Labour will result to increment in quantity of goods supplied because there will be more goods produced and to be supplied.

New technology: The introduction of new technology helps cut cost thereby increasing the quantity of goods produced and supplied.

CONCLUSION

This brings us to the conclusion of the introduction of supply of goods and services. Note that it works together with the theory of demand. If there isn't demand for goods and services, there wouldn't be supply of goods and services.

Thanks for visiting my post

Beetees 💓