Supply is determined by price, prices of other goods, technology, and so on.
Industry Supply Versus Firm Supply
Firm supply is determined by economic conditions and competition. Industry supply is the horizontal sum of firm supply.
Market Equilibrium
Surplus and Shortage
Surplus is excess supply. Shortage is excess demand.
Comparative statics analysis
Comparative statics analysis is to examine the effects on market equilibrium of changes in economic factors underlying product demand and supply.
Basis For Supply
How Output Prices Affect Supply
Firms offer supply to make profits.
Higher prices boost the quantity supplied. Lower prices cut the quantity supplied. Other Factors That Influence Supply
Industry Demand Versus Firm Demand
Industry demand is subject to general economic conditions. Firm demand is determined by economic conditions and competition.