ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The supply of a commodity is the amount of the commodity which the sellers or producers are able and willing to offer for sale at a particular price, during a certain period of time. ADVERTISEMENTS: In other-words, we can say that supply is a relative term. It is always referred to in relation of price and time.

Detailed explanation-2: -Hence, supply of commodity refers to the amount of goods which are offered for sale at a particular price per unit of time. Q. Supply is the quantity of goods and services readily available for sale in the market at a given price.

Detailed explanation-3: -The supply curve functions in a similar fashion, but it considers the relationship between the price and available supply of an item from the perspective of the producer rather than the consumer.

Detailed explanation-4: -Sir James Steuart. Sir James Steuart’s Inquiry into the Principles of Political Economy, published in 1796, was the first known printed use of the term “supply and demand.” When Steuart wrote his treatise on political economy, one of his main concerns was the impact of supply and demand on laborers.

Detailed explanation-5: -The supply of a commodity is affected not only by price but by other factors also which include: (i) prices of other commodities, (ii) prices of factors of production, (iii) objectives of the producer, and (iv) production technology.