Difference between revisions of "Supply"
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'''Supply''' is the amount of a product or [[commodity]] that is available. | '''Supply''' is the amount of a product or [[commodity]] that is available. | ||
| − | In [[free market]] systems of [[economics]], when supply is greater than demand, that results in [[oversupply]] and the price will usually begin to drop. In cases where demand is greater than supply a [[shortage]] will result and then prices will usually begin to increase. | + | In [[free market]] systems of [[economics]], when supply is greater than [[demand]], that results in [[oversupply]] and the price will usually begin to drop. In cases where demand is greater than supply a [[shortage]] will result and then prices will usually begin to increase. |
Sometimes in business, supply is purposely restricted so that oversupply will not occur. The interrelationship between supply and demand is called [[supply and demand]]. | Sometimes in business, supply is purposely restricted so that oversupply will not occur. The interrelationship between supply and demand is called [[supply and demand]]. | ||
[[Category:Economics]] | [[Category:Economics]] | ||
Revision as of 18:48, October 1, 2007
Supply is the amount of a product or commodity that is available.
In free market systems of economics, when supply is greater than demand, that results in oversupply and the price will usually begin to drop. In cases where demand is greater than supply a shortage will result and then prices will usually begin to increase.
Sometimes in business, supply is purposely restricted so that oversupply will not occur. The interrelationship between supply and demand is called supply and demand.