Chapter Notes - Concept of Supply (Producer Behaviour and Supply) Commerce Notes | EduRev

Economics Class 11

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Commerce : Chapter Notes - Concept of Supply (Producer Behaviour and Supply) Commerce Notes | EduRev

The document Chapter Notes - Concept of Supply (Producer Behaviour and Supply) Commerce Notes | EduRev is a part of the Commerce Course Economics Class 11.
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CONCEPT OF SUPPLY

  1. Individual supply refers to quantity of a commodity that an individual firm is willing and able to offer for sale at each possible price during a given period of time.
     
  2. Market supply: It refers to quantity of a commodity that all the firms are willing and able to offer for sale at each possible price during a given period of time.
     
  3. The supply curve of a firm shows the quantity of commodity (Plotted on the X-axis) that the firm chooses to produce corresponding to two different prices in the market (plotted on the Y-axis)
     
  4. Supply Schedule refers to a table which shows various quantity of a commodity that a producer is willing to sell at different prices during a given period of time.
     
  5. Determinants of supply are a)  state of technology b) input prices c) Government taxation policy.
     
  6. Law of supply: It states direct relationship between price and quantity supplied keeping other factors constant.
     
  7. Movement along the supply curve: It occurs when quantity supplied changes due to change in its price, keeping other factors constant.
     
  8. Shift in supply curve: It occurs when supply changes due to factors other than price.
     
  9. Reasons for shift in supply curves: Change in price of other goods, change in price of factors of production, change in state of technology, change in taxation policy.
     
  10. Expansion in supply: It occurs when quantity supplied rises due to increase in price keeping other factors constant.
    Chapter Notes - Concept of Supply (Producer Behaviour and Supply) Commerce Notes | EduRev
  11. Contraction of supply: It means fall in the quantity supplied due to fall in price keeping other factors constant.
    Chapter Notes - Concept of Supply (Producer Behaviour and Supply) Commerce Notes | EduRev
  12. Increase in supply refers to rise in the supply of a commodity due to favorable changes in other factors at the same price.
    Chapter Notes - Concept of Supply (Producer Behaviour and Supply) Commerce Notes | EduRev
  13. Decrease in supply: It refers to fall in the supply of a commodity due to unfavorable change in other factors at the same price.
    Chapter Notes - Concept of Supply (Producer Behaviour and Supply) Commerce Notes | EduRev
  14. Price elasticity of supply: The price elasticity of supply of a good measures the responsiveness of quantity supplied to changes in the price of a good.
  15. Price elasticity of supply = %change in qty supplied/ %change in price.
  16. Geometric method:
    Chapter Notes - Concept of Supply (Producer Behaviour and Supply) Commerce Notes | EduRev

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