Saturday, October 14, 2017

Market supply of product

Supply management organizations are consistently being challenge to build superior supply chains to increase competitive advantage.

Supply is the amount of a good, service, or resource that producers are willing and able to sell at a series of prices at a moment in time. While market is a place where goods can be bought and sold.

According to the law of supply, there is a direct relationship between the price of a good and the quantity supplied. That is, if the price of a good increases, the quantity supplied will also increase.

In supply markets where there are large numbers of players and there is surplus capacity in the market, the times bought will be classified as low-supply-risk category items.
Packaging material and transport service markets come in this category and represent low-risk items. Diesel engines, diesel fuel systems and proprietary technology items have few suppliers, so they represent the high risk supply category.

The quantity supplied of any good or service is the amount that sellers are willing and able to sell. There are many determinant of quantity supplied, but price plays a special role.

When the price of ice cream is high, selling ice cream is profitable, so the quantity supplied is large.

The forces of supply and demand in the market determine how prices for goods and services are set. Essentially, when supply increases and demand remains stable, prices go down; when demand increases and supply remains stable, prices go up.
Market supply of product

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