Allocation of Resources · 4 question types
Past paper frequency (2018 to 2024)
This topic accounts for approximately 18% of your exam marks.
Supply appears alongside demand on virtually every paper; cost changes, technology, and taxes/subsidies are the most tested supply shifters.
Supply is the quantity of a good or service that producers are willing and able to offer for sale at a given price over a given time period.
The mirror of the demand definition. Two parts are essential.
Like demand, supply is always measured over a time period (per day, per month, per year) and at a specific price or across a range of prices.
A definition that says "everything the firm has in stock" or "the amount in the warehouse" loses both marks. Supply is the quantity offered for sale at a price, not inventory.