Sippy

Able to
offer
Willing
sellers , govt
supply firms
.

: = .
+

Market @

Various Prices .

offerto sell
succeed willing
+
✓ HMU
able → Production cost
✗ Bear Kar
Pa Rahe their

supply __ Flow

*
Period

*
somich supplied per #

Determinants

)
Price
E✗Pᵗᵈhhñs
Price Phil Tech Govt completing of
Related
good =
= ,op policy & future
gag pn.ae
mangy
size Estoy .
 Price P a
Profit ↑
oty supplied .
✗

Related & P related ↑ ✗

1-
falls
Q this product

shift to high profit high price .

costly

}Gtmg
EP cost ↓
profit↑ firm
profit ↑

Tuppy
costoffop ✗

new entrants ↑

"
1foP will relative
Change in price of cause
change in
of diff line Guilt
profitability of production
cause

& "

producers
to
shift from one line to other
supply of diff
"
commodities will
change
automation ↑ Cost ↓
tech : new tech ↑
eq :
efficiency
more
goods
=
Same resource

( spare capacity * ease

of factor
substitution
a-
costofshhtm )
affect
supply .
 can sell

GovtPf- :
affects what firm ? one allowed to sell .

↑ Copp
Dcom#* least ,
sale ,
Ñnpduty )
↓
Price ↑
supply ↑ only if proportionately
2)
subsidiary funding ,
prop
. cop ↓ incentive

Restriction :
eg impost Quota Halton ing → Prod ↓

competition →

A
competition monopoly
supply ↑ supply ↓ .

Price
Euputatmof → Choice to sell now ✗
Enpedatim of SP .

Seller
compare current 4 future
→
price .

Anticipate futureprice ↑ Supply Today

↓
.

N_o_ of seller → Sellers

Supply
✗ .

•
Entry of New firms Shift supply curve
RIGHT .
 Others Determinant Natural
factor
:
of supply
=

Govt Policy foreign

→ Industrial
.

Manmade factor

infra facility

had ofseipplgs
Costof
Producing an additional unit
§ Willingness
price @ goods sold ✗

Difference Between sP&cp

oty Produced offered Price good

Law :
+ ✗
fetched by
d-

Cetera Paribas

Exception : Labor ✗

High rate →
Qty supplied ↓
.

wage ↑ cost to firm ↑ SP ↑ Demand & need of labor ↓

 Phenomenon considered
Labor ? other FOP
Superfly Effected Bff
.

Degree of possible adjustment

in
supply
Time
SR
supply ↑& ✗
:

LR : adjustment possible .

with
change in time .

supplyscheduk_ & card

Oty of good ordered at diff " alternate pieces

F-
2

3
5
35
45
↑☆
p
-

upward sloping
i. positive direct relation
-

: →

: -
curve
as →B

• other
factor constant

heftiest oty supplied @ each price

what curve shows ? *

Minimum Price that induce

supplies
to sell
 Meet supply
Sum
of supply

}
-

all individual Horizontal Add

firm
-
•
.

@ various alternate Supply Curves

-

◦
prices
.

Movement in curve

lncldec Vs
1¥ shift othervariable
-

Movement
f- Along otherthan Price
+
.

DinQs_Mwt shift &

changeinsupplg-fmMDuetopric.ae
factor
change .
Change in other

→
supply ↑↓ other than Comm own.

↓
price
→ Up / down Movement
in curve
More / Less offered for sale
.

eenpamion/ Contraction
•
@ SAME PRICE

'

EE
-

price changing
•

#
& .
same price
-

Oty also
_
Shift
 Elasticity
dty supplied % Price
responsiveness change in
•
→

•
Es =
%DMQS_ =
DQS

% bins #
=- Pgp ✗

API

Elasticity ↑ = curve flatter

knots usdte>

types

perfect inelastic
Urias dÉ4?dT
Lesselaslte .

greater
elastic

P&↑ ↑
py .

change small P%↑↓

as -_
some
Less
051 .

change Qs
response
↑
Es=0
◦ < <•
Vertical supply curve KEs< •

"
"
Wehauetoseey .
comparison in Qs with -1 AP .
-

%dbtmy.FM
Unit elastic Poona perfect elastic
-
= =

% D
Es =D
* Etat
&

Es =D

in both Places
• horizontal supply curve
exact change
.

No supply @ Lowest
◦

"
"

Line
Dividing DP
between Elastic G inelastic range .
°
Infinite small
•
Infinite large Dos

sell
•
willing to
any Eeeuerything
at newp .

speed coz { SR -
LR -

capacity}
situation A Idle capacity present
→

high small ""

elastic
"" ① "②
Shift is QS

↑
=/\ situation B
Less 808
: no idle

Shift
capacity
Qs Mech
A elastic ,

B
change in Price needed
3104
 Measurement
-

Point
Calculation point on the
Elasltlebj
=
→ on one curve .

A is
replaced by did

small change -

→
when we dont Base → ARC
have a known Take
Average

Determinants
=

Alhow much they

Seller
fllketseldy how they can
change
•
• can .

Elasticity
✗

Cost Us Negligible
•
of change ↑
•
Bodh process Time
complex belong production
• SR Vs LR → short-Run :
resource find ✗
alternate ✗

→
lengthen → New plant ✓

• Producer ↑ , competition ↑
 •
Barrier ↓
full Vs without cost rise
capacity already spare
-

◦ → incase .

•
Resource procure .

• Stock
availability ,
storage cheap
.

,
Destructible f
•
factor substitution Ease

•
Labor scarce
,
skilled , specific
training Hours
cards demand ↓
•
Mobile
capital Eehabor
)
.

→
use printer in banner

• Continuous Vs Blount Production

↓ ↓
EST Est .

• future
price expectation

EoiumPm¥ ( using Dhs)

Intersection hlktceoeiilibn.am
of DGS
• = .

tosell
• What
Buyer want to
Buy = Seller wishes .

• Both parties satisfied with P Ee Q .

• E
Market Price
◦

Clearing
 {fnag%lhemeq [
Microeconomic = To determine Price : - Price

Theory]

qt-99121-194991 ÑasÑ
G
social
Efficiency
Mkt Eoeeilibsium
-

Social
Efficiency = net -

gain to
society dueto
Exchanges
=
Consumer Producer
+
surplus surplus

SP > unit
Producing
Ps =
costof :/

=
whatactually > nainimum
Receive price@ willeyitosdt
s

P2 ☆•

p I→②
p, _ _ . _
É•
I ☆
/ D

⑦ di Q as
 # Lost important conclusion

current Eoiulibriwm Price =P

Suppose oty supplied =

Qa

supplier willing
to sell Q
, @ P, but
gets P .

Q' Producer surplus

At Eouilibrium
Qty
'
• → = 0

•
Socially Efficiency is at

HI

1) for Oty ? customer

Beyond Q Think
from perspective of supplier G