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Definition of Supply

Definition of Supply

Supply refers to a concept in Economics which means the amount of commodity that is made available to the consumers at a particular point of time. Supply has a relation with a price like demand, but unlike demand, the supply of a commodity increases when price increases, other things remaining constant. Other factors also contribute to bringing about a change in the supply of a commodity. The supply is determined by various factors like price, utility and preferences of the consumers. Now let us move on to understanding the concept of change in supply.

Change in Supply - The Definition

• Change in Supply - The Definition
• The change in Supply is defined as an increase or decrease in the Supply of a commodity caused by various related factors. The change in supply definition is the increase or decrease in supply owing to various factors. Change in supply may be caused by the price of related goods, tastes, income and consumer preferences. This is what causes a change in supply.
• A change in supply may occur because of the introduction of new technologies, the introduction of new and efficient methods of production, and an increase in competition in the market. Graphically change in supply brings about a shift in the supply curve. This is, in brief, the change in supply definition.

What Causes Change in Supply?
Now that we know what is the change in supply, let us look at a few primary factors that cause supply to change. There is a consensus among economists that there are various primary factors that cause supply to change. These include technology, the price of raw materials, seller expectations, number of sellers in the market and prices of other commodities.
For example, when the introduction of a new technology reduces the cost of production of a commodity as per the law of supply, the output of the commodity would increase. If the overall supply of the commodity also increases in the market, the prices would fall, demands increase, and subsequently causing an increase in supply.