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Definition of Market Supply:
The market supply
is the total quantity of a good or service that all producers are willing to supply at the prevailing set of relative prices during a defined period of time. It is understood that "Supply" means Market Supply, unless it refers to one producer.
In most communities, there are many teenagers who offer their babysitting services to earn extra money. Each babysitter is in a unique position. One may need the flexible hours babysitting offers to pursue other activities. Others may be limited because they have another job that consistently restricts babysitting availability. Another babysitter may not have access to a car and must depend on someone to drive her. These restrictions affect their individual supply curves. Businesses also have restrictions and differ in their manufacturing expertise and cost structure. Just like the babysitters, each business will have its own supply curve or schedule. The sum of each individual producer's supply equals the market supply, or what is more commonly referred to as the supply of a particular good or service. A market supply curve (or supply curve) is the amount all producers are willing to offer of a good or service at a range of prices over a defined period of time.
Dig Deeper With These Free Lessons:
Supply – The Producer's Perspective
Demand – The Consumer's Perspective
Supply and Demand – Producers and Consumers Reach Agreement
Factors of Production – The Required Inputs of Every Business