Objective;

 Definition of Supply
 Price and Supply
 Individual and market
Supply
 What Is Supply?
 Supply refers to the amount of a good or service firms or producers are willing to make and sell at
different prices. The amount of good or a service producers are willing and able to make and sell to
consumers in a market is known as the quantity supplied of that product, measured per period of
time, say each week, month or year
 However, a private sector firm interested in profit will only make and sell a product if it can do so at
a price over and above what it costs the firm to make. The higher the price of the product, the more
the firm will supply because the more profit it will expect to make. This can be applied generally to
the supply of all goods and services. As price rises, quantity supplied will usually extend.
 The market supply of a product will be the sum of all the individual supply curves of producers
competing to supply that product .
 In general, the supply curve from any product will slope upwards, showing that as price rises,
quantity supply extends.
As The Price rises the market
supply extends. That is a change in
the price of the product causes a
movement along the supply curve.