Introduction:

In the ordinary language or term supply and stock conveys the same meaning   but in economics the term supply is different from that of stock. Supply has all the attributes of demand a seller can sell a commodity when he has the ability and willingness to sell. Supply is always at a price without referring to the price supply has no meaning. Supply is always express in terms of specific quantity and it is held supply is relative to a person, place and time. Supply may be defined as” how much of goods will be offered for sale at a given time” according to professors, supply may be defined as a schedule which shows the various amount of a product which a producer is willing to and able to produce and make available for sale in the market at each specific price in a set of possible price during some given period. The determinants of supply are.

Determinants of supply:

• Natural factors: Favorable natural factors like good climatic condition, timely adequate, well distributed rainfalls results in higher production expansion in supply. on the other hand, adverse factors like bad weather condition, earthquakes, unlimited ill distributed, inadequate rainfall etc decline in production and contraction in supply.
• Change in techniques of production: An improvement in techniques of production and use of modern highly sophisticated machines and equipment will get a long Way in raising the output and expansion in supply on the contrary primitive techniques are responsible for lower output enhance lower supply.
• Cost of production: Given the market price of a product if the cost of production rises due to higher wages, interest and price input, supply decreases if the cost of production falls on account of the above said reasons in that case supply also rises.
• Prices of related goods: If prices of related goods falls in that case the seller of a given commodity offer more units in the market even though the price of his product have not gone up. Opposite will be the case when price of related good rises.
• Monopoly power: Supply tends to be low when the market is controlled by monopolist or a few sellers, as in the case of oligopoly generally supply would be more under competitive condition.
• Complement of goods: In case of joint demand of production and sale of one product may lead to production and sale of other product also
• Discovery of new source of input: Discovery of new source of inputs helps the producer to supply more at the same price and vice versa.
• Improvement in transport and communication: This will facilitated free and quick movement of goods and services from production centers to marketing centers
• Future rise in price: When seller anticipate future rise in price, in that case current supply tends to fall opposite will be the case when the seller expected fall in price.
• Number of seller or firms: Supply would be more when there are a large number of seller similarly production and supply tends to be more when production is organized on large scale basis, if the speed of production is highly supply expand. Opposite will be the case when number of sellers is less small scale production and low rates of production.

also read: explain the types of elasticity of demand.