Understanding Supply in Economics

Supply refers to the amount of a product or service that a seller or producer is willing and able to offer for sale at a given price level. It is the quantity of goods or services that a seller has available for purchase.

In other words, supply represents the amount of goods or services that are available for buyers to purchase at a specific price. The law of supply states that as the price of a good or service increases, the quantity of the good or service that suppliers are willing to sell also increases. This is because higher prices make it more profitable for suppliers to produce and sell more of the good or service.

For example, if a farmer has 100 apples to sell and the current market price is $5 per apple, then the farmer's supply of apples is 100 apples. If the market price increases to $7 per apple, the farmer may be willing to sell more of their apples, say 120 apples, because the higher price makes it more profitable for them to do so. In this case, the farmer's supply of apples has increased as a result of the higher price.