Competitive supply
Goods in competitive supply are alternative products a firm could make with its resources. E.g. a farmer can plant potatoes or carrots. An electronics factory can produce smart-phones or smart-watches. Land has many uses – e.g. commercial/residential.
Excess supply
When supply is greater than demand and there are unsold goods in the market. Surpluses put downward pressure on the market price.
Law of supply
The law of supply is that there is a positive relationship between the price of a good and supply. As prices rise, we see an expansion of supply. If price fall, there should be a contraction of supply.
Market supply
Market supply is the total amount of an item producers are willing and able to sell at different prices, over a given period of time e.g. one month. Industry, a market supply curve is the horizontal summation of all each individual firm’s supply curves.
Supply
Quantity of a good or service that a producer is willing and able to supply onto the market at a given price in a given time period.
Supply chain
Different stages of making, distributing and selling a good or service from the production of parts, through to distribution and sale of the product.
Supply curve
The relationship between market price and quantity supplied onto the market.
