What is Quantity Supplied in Economics?
Quantity supplied refers to the amount of a good or service that producers are willing and able to supply at a given price in a particular time period. It is a crucial concept in economics as it helps determine the market equilibrium and price levels.
Factors Affecting Quantity Supplied
- Price of the good or service
- Production costs
- Technology
- Government regulations
Example of Quantity Supplied
For example, if the price of a product increases, producers are incentivized to supply more of that product to the market. On the other hand, if the production costs rise, the quantity supplied may decrease as it becomes less profitable for producers to supply.
Case Study: Smartphone Industry
In the smartphone industry, the quantity supplied is heavily influenced by technological advancements. As new features are developed, producers may be willing to supply more smartphones to meet consumer demand at a competitive price point.
Statistics on Quantity Supplied
According to recent data, the quantity supplied of electric vehicles has been increasing steadily due to advancements in battery technology and government incentives. This has led to a surge in the production and availability of electric vehicles in the market.
