ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Supply is the producer’s willingness and ability to supply a given good at various price points, holding all else constant. An increase in price will increase producers’ revenues, so they’ll be willing to supply more; a decrease in price will reduce revenues, and so producers will supply less.

Detailed explanation-2: -If the cost of any factor of production-labor, raw materials, equipment-decreases, the quantity that producers are willing (and able) to supply at a given price increases. Producers with lower costs will always be able to supply more of a product at a given price than those with higher costs.

Detailed explanation-3: -Supply refers to the quantity of a good that the producer plans to sell in the market. Supply will be determined by factors such as price, the number of suppliers, the state of technology, government subsidies, weather conditions and the availability of workers to produce the good.

Detailed explanation-4: -In economics, quantity supplied describes the number of goods or services that suppliers will produce and sell at a given market price.

Detailed explanation-5: -Demand is the desire, willingness and ability of consumers to pay a certain price for a product or service at a given period. Businesses can use it to determine the necessary supply and how to price an item.