When we talk about supply from an economic point of view, we are actually referring to the supply curve. Or what is the same, the line that determines the quantity that the bidders are willing to offer in the market for each of the possible prices. It is important to bear in mind that it is a simplified model, so that the price and quantity vary, assuming that the rest of the possible factors capable of altering the supply remain constant.
The supply curve
The supply curve has a positive slope, in that bidders are willing to offer more quantity the higher the price. To determine how the price is configured in the market, it is necessary that the curve of supply and demand. In this way, the point of intersection determines the quantity and the price at which, taking into account the demand, the suppliers are willing to offer their products or services.
This same breakeven it reflects the quantity demanders are willing to buy and the price at which they are willing to buy. It could be said that the offer is the amount of services or products available in the market. The supply curve is also related to the different types of market. Thus, it can be said that, in case of perfect competition, there is a freedom of entry and exit of producers or suppliers in the market. That is, there are no barriers of any kind. In addition, there are numerous small bidders and numerous small acquirers. There is a good influx of information to the market and the products that are marketed are homogeneous.
Factors influencing supply
In addition, the supply is directly related to production and productivityTherefore, some of the factors that can influence the supply are the prices of the materials, access to technology, and the prices of the productive factors that are incorporated into the production process, as they are, the land, labor and capital.