Question

What is meant by the term supply?

Answer 1

Supply of a commodity refers to the total amount of a specific good or service that the producer is willing to sell corresponding to different possible prices of the commodity at a point of time.

While supply can refer to anything in demand that is sold in a competitive marketplace, supply is most used to refer to goods, services, or labor. One of the most important factors that affects supply is the good’s price. Generally, if a good’s price increases so will the supply.