ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Supply is the willingness and ability to produce and sell a good or service. price and the quantities bought and sold. In our economy, the forces of supply and demand work together to establish prices.

Detailed explanation-2: -When a firm’s profits increase, it is more motivated to produce output, since the more it produces the more profit it will earn. So, when costs of production fall, a firm will tend to supply a larger quantity at any given price for its output. This can be shown by the supply curve shifting to the right.

Detailed explanation-3: -SUPPLY: The willingness and ability to sell a range of quantities of a good at a range of prices, during a given time period. Supply is one half of the market exchange process–the other is demand.

Detailed explanation-4: -The term supply means sellers’ willingness and ability to offer products for sale in a market. In most markets an increase in the price of a good will increase the quantity of the good that sellers are willing to supply.