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"Supply" is a term used in the context of the supply and demand principle in economics. It refers to the amount of a particular product or service that is available for sale in a given market at a certain time.
For example, if there are 200 houses for sale in a particular area, then the supply of houses in that market is 200. The supply can increase or decrease depending on factors such as the number of houses being built or the number of people moving into or out of the area.
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A few additional things you should know about supply:
The law of supply: This is a fundamental principle in economics that states that as the price of a product increases, the quantity supplied also increases, and vice versa. In other words, suppliers are willing to produce and sell more of a product at higher prices, but will produce and sell less at lower prices.
Elasticity of supply: This refers to the degree to which the quantity supplied of a product changes in response to changes in price. If the quantity supplied changes significantly in response to changes in price, the supply is said to be elastic. If the quantity supplied changes only slightly in response to changes in price, the supply is said to be inelastic.
Time horizons: The supply of a product can change over different time horizons. In the short run, suppliers may be unable to increase their production levels in response to changes in demand or price. In the long run, however, they may be able to build new factories or hire more workers to increase their production levels.
Marginal cost: The marginal cost of production is the additional cost of producing one more unit of a product. As the quantity produced increases, the marginal cost may also increase. This can impact the supply curve and the quantity of a product that suppliers are willing to produce and sell.
Understanding supply is important because it helps to determine the price of goods and services. If the supply of a product is low, but demand is high, then the price will likely increase because people are willing to pay more for it. Conversely, if the supply is high and demand is low, then the price will likely decrease because sellers will have to compete with each other to make sales.
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
Supply and demand, they're key in real estate,
Supply is what's offered, it's a seller's fate.
It's the houses and properties up for sale,
In a neighborhood or town, it never fails.
For example, if a city has 100 homes for sale,
The supply of houses is 100, without fail.
If the demand for houses is high in that place,
The prices will go up, at a steady pace.
But if the supply of houses is really large,
And not enough buyers, that's a real estate charge.
Then sellers will have to lower the price,
To attract buyers, and make a sale that's nice.
So keep in mind supply's an important notion,
In real estate, it sets the market in motion.
It's what's available for buyers to select,
And what sellers can offer, it's all in effect.