A fundamental concept of economics is the offer. The offer describes total amount of goods or service that is available to consumers. The is closely related to the specific price.
All else constant, the offer a product depend on the variation in prices. Along with demand, offer is one of the fundamentals of the economy and knowing how to help gain a better understanding of the functioning of the economy.
In a market, supply is the sum of all the offers of different providers. If there is a lack of offer, suppliers do not maximize their profits, but if there is a surplus in this, the price is reduced and may incur losses. It is therefore necessary to know in detail the market demand.
On a graph in which the X-axis represents the quantity supplied and the Y price, demand will line sloping, which means there is a directly proportional relationship between price and quantity. That is, the higher the price of a product, the greater the amount offered, and it is logical, because the more expensive a product is, the greater the interest of suppliers to sell.
The amount offered depends on variables such as product preferences, price or utility. A change in these variables will have a displacement along the curve offer. Technological change, on the other hand, they can move the offer right, which means that at the same price you can offer more product.
In economics, it is important to know how the offer and its counterpart, the demand because it helps to understand the market dynamics.
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