How Much Do I Want to Sell? Understanding the Market

After you know how much your consumers want, the next important question is to understand how much you are willing to sell. So, let’s get started.

In this video, you learnt about supply, which is the quantity of goods that producers are willing to produce during a given period of time and at a given price. 

You also learnt about the law of supply, which states that all other factors remaining constant (ceteris paribus), with an increase in the price of a good, the quantity supplied increases, and with a decrease in the price, the quantity supplied decreases. Because at the higher price the producers are willing to produce more.

Next, you learnt about the supply curve, which has an upward slope, showing a direct relationship between the price and quantity supplied of any good.

A change in the quantity supplied due to any change in the price of the product is called a movement along the supply curve.

In the next segment, you will learn about what determines the supply.