Principles of Economics and Bangladesh Economy:Supply Analysis

BANKING DIPLOMA EXAMINATION

Banking Diploma Courses under The Institute of Bankers, Bangladesh(IBB)

Principles of Economics and Bangladesh Economy-JAIBB

Supply Analysis

Q.1 What is Supply and Its Determinants?

Ans.: Meaning : “The supply of good is the quantity offered for sale in a given market at a given time at various prices”.

 For example, total seller of a given market of a certain crops like paddy supply in various prices within a day .

Thus, the important features of supply may be concluded as:-

(i) It is the quantity of commodity offered for sale in the market at various prices.

(ii) It is flow and is always measured in terms of time.

Determinants of Supply are follows:

(i) Price of the Good

(ii) Price of Related

(iii) Price of Factors of Production

(iv) State of Technology

(v) Government Policy

(vi) Other Factors: Includes various individual policies, exchange policies, trade policy etc. Time is another important factor influencing supply e.g. it is quite difficult to adjust the supply to the changing conditions in the short period. But such adjustments in supply become easy if the time period is long. Again, transparent and infrastructural facilities positively affect the supply of a good.