Supply

The quantity of a goods or services that firms are able and willing to sell at any given price, per time period. One non-price determinant of supply is changes in technology

As the price of a good increases the quantity supplied also increases. There is a positive relationship.

Refers to the cost of producing an additional unit of output

The sum of all individual supply of producers at each price level for a given product

• Changes in costs of factors of production

• Prices of related goods

• Indirect taxes or subsidies

• Future price expectations

• Changes in technology

• Number of firms

The output of one product prevents or limits the production of alternative products due to competing resources. Producers have limited resources like land and labor

An increase in the production of one product automatically increases the supply of atleast another (joint) product. For example, cows, milk and leather

Price increases

Price decreases

Describes how output is affected when a firm uses more variable inputs while maintaining at least one factor of production fixed in the short run