Supply

SUPPLY

by Antonio C. Antonio

March 4, 2015

Supply is a concept that needs to be understood in the study of environment and natural resources management.  Like goods and services in the realm of economics and business, natural resources are offered goods and services too.

Supply refers to the different quantities of goods and services that sellers are willing to place in the market per unit time at various prices.  Please note that both demand and supply are both measured and defined in terms of time.  Supply is a fundamental concept that describes the total amount of a specific good or service that is made available to consumers.  Supply can relate to the amount of available at a specific price or the amount available across a range of prices if displayed on a graph.

The Law of Supply states that as the price of a product increases (therefore, good or service), the quantity supplied also increases.  Likewise, as the price of a product decreases, the quantity supplied also decreases.  The Law of Supply describes the behaviour of sellers as a response to alternative prices of a product.  It should be noted that there is a positive relationship between price and quantity supplied.  Such is the distinct characteristic of supply.

Just my little thoughts…

(Please visit, like and share Pro EARTH Crusaders on Facebook or follow me at http://antonantonio.blogspot.com/.)