Quantity Supplied

AAA

DEFINITION of 'Quantity Supplied'

A term used in economics to describe the amount of goods or services that are supplied at a given market price. Graphically, the amount of goods or services supplied lies at any point along the supply curve in a price versus quantity plane. The rate at which the amount supplied changes in response to changes in prices is called the price elasticity of supply.

INVESTOPEDIA EXPLAINS 'Quantity Supplied'

The quantity supplied depends on the price level at any given time in the market. The price can be set by either a governing body by using price ceilings or floors, or by regular market forces. If a price ceiling or floor is set, this means there will be a market imperfection, which will force suppliers to provide a good or service for a noncompetitive price, no matter the cost of production.

RELATED TERMS
  1. Inelastic

    An economic term used to describe the situation in which the ...
  2. Economics

    A social science that studies how individuals, governments, firms ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another ...
  4. Supply-Side Theory

    An economic theory holding that bolstering an economy's ability ...
  5. Aggregate Supply

    The total supply of goods and services produced within an economy ...
  6. Elastic

    A situation in which the supply and demand for a good or service ...
Related Articles
  1. Economics Basics
    Economics

    Economics Basics

  2. How Influential Economists Changed Our ...
    Fundamental Analysis

    How Influential Economists Changed Our ...

  3. Understanding Supply-Side Economics
    Economics

    Understanding Supply-Side Economics

  4. The Minimum Wage: Does It Matter?
    Insurance

    The Minimum Wage: Does It Matter?

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center