 |
Definition of 'Supply'
A fundamental economic concept that describes the total amount of a specific good or service that is available to consumers. Supply can relate to the amount available at a specific price or the amount available across a range of prices if displayed on a graph. This relates closely to the demand for a good or service at a specific price; all else being equal, the supply provided by producers will rise if the price rises because all firms look to maximize profits.
|
 |
Investopedia explains 'Supply'
Supply and demand trends form the basis of the modern economy. Each specific good or service will have its own supply and demand patterns based on price, utility and personal preference. If people demand a good and are willing to pay more for it, producers will add to the supply. As the supply increases, the price will fall given the same level of demand. Ideally, markets will reach a point of equilibrium where the supply equals the demand (no excess supply and no shortages) for a given price point; at this point ,consumer utility and producer profits are maximized.
|
-
Understand how the price of your favourite product is determined.
Read More »
-
Your house depreciates over time, while the land beneath it is likely to do the opposite.
Read More »
-
Does the amount of goods and services produced set the pace for economic growth? Here are the arguments.
Read More »
-
-
Don't believe the water-cooler talk. Big oil companies aren't to blame for high prices.
Read More »
-
Discover some of the factors that cause your investment's value to fluctuate.
Read More »
-
Despite paying one of the highest minimum wages in the world, the minimum wage is a perpetual hot potato among politicians in the United States.
Read More »
-
Read More »
|
|
