4.2 Supply

MyEconLab Concept Video

A market has two sides. On one side are the buyers, or demanders, that we’ve just studied. On the other side of the market are the sellers, or suppliers. We now study the forces that determine suppliers’ plans.

The quantity supplied of a good, service, or resource is the amount that people are willing and able to sell during a specified period at a specified price. For example, when the price of spring water is $1.50 a bottle, a spring owner decides to sell 2,000 bottles a day. The 2,000 bottles a day is the quantity supplied of spring water by this individual producer. (As in the case of demand, the quantity supplied is measured as an amount per unit of time.)

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