Market Supply is the combined quantity that all producers of a product will want to sell at a particular price. The biggest impact on supply is the costs, as a business will want to sell a product that delivers a high profit return.
In the short term (a period of time in which a business cannot change fixed costs) existing firms will use spare capacity and introduce overtime or other immediate ways of increasing the output of supply.
Supply can change more in the long run which to economists is the time it takes to make a change in the fixed assets of a business.
On the Supply Graph, if the supply curve moves to the right it means supply has increased and alternatively a move to the left means supply has fallen, perhaps due to industry shrinkage or a rise in costs.
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- Home
- The Economy of China
- The Economy of India
- The Economy of the USA
- The Economy of South Africa
- Internatioanl Business
- Unit 4 Research
- The Rail Industry Case Study
- Evidence A: UK has the 'most expensive train fares in Europe
- Evidence B: High Speed Rail
- Evidence C: Public subsidy for rail users must end
- Evidence D: EU Directives 91/440- Development of the Community's railways
- Evidence E- Labour calls for review of trains contract awarded to Siemens
- Evidence F- Campaign for better Transport warns Government over high speed rail
- Evidence G- Passenger Kilometers traveled in Great Britain 1987 to 2009
- Evidence H- Passenger journeys in Great Britain in 1985-86 to 2008-09
- Evidence I- Commuters face overcrowding
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