# CPT Chapter Supply

With Bharat Galani.Duration:1hrs 37min

 Supply Duration (min:sec) What is Supply? Introduction 01:04 What is Supply 12:09 What Determines Supply 16:03 Law of Supply 04:57 What is change in supply vs. quantity supplied 09:22 Difference  Supply vs. Quantity supplied 01:12 Summary 00:52 Elasticity of Supply What is Elasticity of Supply 03:12 Calculating Elasticity of Supply 07:00 Interpretation on Elasticity Number 11:35 Other ways of measuring Elasticity of Supply 04:39 Summary 04:00 Equilibrium Price 10:48 Quiz 08:21 Conclusion 02:02 Total 1:37:16

## Notes

Index

What is Supply
What Determines how much is supplied
Law of Supply
Increase or Decrease in Supply
Increase or Decrease in Qty Supplied
Elasticity of Supply
Market Price

What is Supply

Definition:-
Producers are willing and able to offer At various price During a given time

Properties:-
1. Suppy is “Offer for Sale” not Actual Sale
2. Supply is a “Flow Concept” not a Stock Concept
Eg. Profit & Loss Account vs Balance Sheet

What Determines Supply

Price of the goods
Price of Related Goods
Price of factors of production
State of technology
Government Policy
Other factors

Measurement of Supply Elasticity

Point- Elasticity
Arc- Elasticity

Few questions-

If the supply of a commodity is perfectly elastic, an increase in demand will result in :

(a)Decrease in both price and quantity at equilibrium
(b)Increase in both price and quantity at equilibrium
(c)Increase in equilibrium quantity, equilibrium price remaining constant
(d)Increase in equilibrium price, equilibrium quantity remaining constant

When change in the quantity supplied is proportionate to the change in the price, the producer is said to have_______:

(a)Perfectly elastic supply
(b)Relatively elastic supply
(c)Unitary elastic supply
(d)Perfectly inelastic supply

Expansion in supply refers to a situation when the producers are willing to supply a :
(a)Larger quantity of the commodity at an increased price
(b)Larger quantity of the commodity due to increased taxation on that commodity
(c)Larger quantity of the commodity at the same price
(d)Larger quantity of the commodity at the decreased price

When supply is perfectly inelastic, elasticity of supply is equal to :
(a)+ 1
(b) 0
(c).1
(d)Infinity

Short run price is also called by the name of______.
(a)Market price
(b)Showroom price
(c)Maximum retail price
(d)None of these.

When Supply Curve shifts to the right there is_______in Supply.
(a)An increase
(b)Expansion
(c)Contraction
(d)Decrease

Conclusion-
What is Supply
What Determines how much is supplied
Law of Supply
Increase or Decrease in Supply
Increase or Decrease in Qty Supplied
Elasticity of Supply
Market Price

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