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Supply
Qty of the commodities that the producers are willing to put to…
Supply
Qty of the commodities that the producers are willing to put to sale at a paticular time for various possible prices
Determinants
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Government policies
Taxes on commodity reduces supply as profit margin goes down opposite for subsidiaries
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Law of supply
If producers want to maximize sales,
Increase in price of commodity results in increase of supply and vice versa
Reasons
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Entry of new firms
More and more suppliers enter into the market because of related goods having higher price that will lead to more profit
Law of variable proportion
Supply will initially increase as the variable factor increases and then start to diminish
Elasticity of Supply
Degree of responsiveness of quantity supplied with respect to a change in the price of the commodity
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