Economics SSS1 First Term

WEEK 5

Concepts of demand and supply – Supply, schedules and Laws

Performance Objectives

Student should be able to:

1. Explain the meaning of supply, draw schedules and curves of a given commodity.
2. State the law of supply.
3. State and explain factor affecting supply for a commodity.

Content

Definition of supply
Supply is the willingness and ability of producers to create goods and services to take them to market. Alternatively, the supply of a commodity is the quantity of that commodity which a producer is willing and able to sell at a given price over a period of time.
Supply is positively related to the price given that at higher prices there is an incentive to supply more as higher prices may generate increased revenue and profits. Supply moves in the same direction with price. The higher the price prevailing.... View More