FUNDAMENTALS OF SUPPLY

Abstract

Product supply is the amount of products
that a producer plans to sell within a given
period of time. Volume of supply of a product
depends on many factors, the most important
being the price. In addition to that, there are
other important factors about to be mentioned
in this paper.
The law of supply states that if the price of a
product is at a higher level, the supply has also
been increased with the assumption that the other
factors that affect the supply have remained unchanged.
The important aspect of supply is the
production cost. If it remains unchanged, the higher
price of the product shall bring higher profits to
the producer. Therefore, higher profit represents
an incentive for increasing the production volume.
The supply curve displays the amount of supply
with different product prices when other factors
that affect the supply remain unchanged.