What is Market Supply in Economics?

 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.

 

♦Market supply refers to the sum of all
individual supplies for all sellers of a
particular good or service.
 

♦Graphically, individual supply curves
are summed horizontally to obtain
the market supply curve. 

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. The entry of new firms into an industry will cause an outward shift of market supply; so too would an industry-wide improvement in the technology available to producers.

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