Type of Supply. n economics, supply refers to the amount of a good or service that producers are willing and able to offer for sale at a given price and time period. There are different types of supply that can affect the market, and these include:
type of supply
- Individual Supply
Individual supply is a type of supply which refers to the amount of a good or service that an individual producer is willing and able to offer for sale at a given price and time period. This type of supply is based on the decisions and actions of individual producers, and it can be influenced by factors such as production costs, technology, and government policies.
For example, if the price of a product increases, a producer may be motivated to increase production to take advantage of the higher prices and earn more profits. Conversely, if the production costs increase, the producer may reduce the amount of goods or services supplied in order to maintain profitability. another type of supply is market supply below
- Market Supply
Market supply refers to the total amount of a good or service that all producers in a market are willing and able to offer for sale at a given price and time period. It is determined by the individual supplies of all producers in the market and is represented by the supply curve.
The market supply curve is upward-sloping, indicating that as the price of a product increases, the quantity supplied by all producers in the market also increases. Conversely, as the price of a product decreases, the quantity supplied by all producers in the market decreases.
- Short-Run Supply
Short-run supply is a type of supply which refers to the amount of a good or service that producers are able to offer for sale in the short run, given their existing production capacity and fixed factors of production. In the short run, some factors of production may be fixed, such as the size of a factory or the number of workers, while other factors such as raw materials and energy can be adjusted.
For example, if the price of a product increases in the short run, producers may be able to increase the quantity supplied by using existing resources more efficiently or by hiring more workers. However, they may not be able to expand their production facilities or increase their capital investment in the short run.
- Long-Run Supply
Long-run supply. this type of supply refers to the amount of a good or service that producers are able to offer for sale in the long run, given that all factors of production can be adjusted. In the long run, firms can enter or exit the market, and they can adjust their production capacity by building new factories, hiring more workers, or investing in new technology.
For example, if the price of a product increases in the long run, new firms may enter the market, and existing firms may expand their production capacity to take advantage of the higher prices. Similarly, if the price of a product decreases in the long run, some firms may exit the market, and others may reduce their production capacity to avoid losses.
- Joint Supply
A joint type of supply refers to the production of two or more goods or services from a single input or production process. When two or more products are produced together, they are said to be in joint supply.
For example, beef and leather are both produced from the same cow, and an increase in the demand for beef may also lead to an increase in the supply of leather. Similarly, when a tree is cut down to produce lumber, the resulting sawdust can be used to produce other products such as particleboard or animal bedding.
- Composite Supply
Composite type of supply refers to the production of two or more goods or services that are used together or are complementary to each other. When two or more products are produced together because they are used together, they are said to be in composite supply.
For example, if the demand for gasoline increases, the demand for oil may also increase as oil is used to produce gasoline. Similarly, if the demand for cars increases,
Composite supply: Composite supply occurs when a certain commodity can serve two or more purposes. In other words, the supply of the commodity for one purpose will greatly affect the supply of the same commodity for another purpose
For instance, crude oil. The supply of crude oil (petroleum) for the production of petrol will greatly affect the production of kerosene and other uses of petroleum.
If more petroleum is needed for petrol production, the price of petroleum will rise. People who require petroleum for other purposes will be faced with a high price.
Joint or complementary type of supply: Joint or complementary supply occurs when two or more commodities are produced and supplied from one source.
An increase in the production and supply of one will automatically bring an increase in the production and supply of commodities that are produced from the source.
For example, an increase in pr and supply of petrol from petroleum lead to an increase in and supply of kerosene Petrol and kerosene are obtained from a source which is petroleum.
- Competitive type of supply: Competitive supply occurs when many are supplied for the satisfaction of a particular In other words, it is the supply of two commodities that serve as substitutes alternatives to one another, e.g. meat Ariel and Elephant detergents, butter and margarine, Close-Up and Maclean too
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