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Economics Project on Supply – Popular Recent

CBSE 12
Economics Project
on Money And
Banking – CBSE
Table of Contents Class 12
1. SUPPLY December 18, 2019

2. INDIVIDUAL SUPPLY
Marketing
3. MARKET SUPPLY
Management
4. SUPPLY VS STOCK Project on
5. INDIVIDUAL SUPPLY SCHEDULE Chocolate – Class
6. MARKET SUPPLY SCHEDULE 12
7. SUPPLY CURVE February 8, 2020
8. INDIVIDUAL SUPPLY CURVE
Marketing
9. MARKET SUPPLY CURVE
Management Of
10. FACTORS AFFECTING INDIVIDUAL SUPPLY
Biscuits –
11. FACTORS AFFECTING MARKET SUPPLY Business Studies
12. LAW OF SUPPLY Project
13. ELASTICITY OF SUPPLY December 13, 2021
13.1. PERFECTLY ELASTIC SUPPLY
English Project
13.2. PERFECTLY INELASTIC SUPPLY
Work On Rattrap –
13.3. HIGHLY ELASTIC SUPPLY
Class 12 CBSE
13.4. LESS ELASTIC SUPPLY
May 20, 2023
13.5. UNITARY ELASTIC SUPPLY
14. CHANGE IN SUPPLY Project On Social
15. DECREASE IN SUPPLY Issues Class 10
16. PRICE FLOOR June 9, 2023

16.1. FERTILIZER MARKET

16.2. REASONS
16.3. PROBLEM
16.4. REASONS FOR INELASTIC
17. EFFECT OF FERTILIZER ON PRICE
18. ACKNOWLEDGEMENT
19. CERTIFICATE
20. DOWNLOAD PDF OF THE PROJECT
20.1. Download Economics Project on Supply – CBSE 12 PDF

SUPPLY
Supply is the quantity of a commodity a firm is willing to sell in a market at a given price in a
given period. Supply is a fundamental economic concept that describes the total amount of
the specific good or service that is available to a consumer. Supply can be related to the
amount available across a range of prices if displayed on the graph. The concept of supply in
economics is complex with many mathematical formulas practical applications and
contributing factors.

INDIVIDUAL SUPPLY
Individual supply refers to the supply of a commodity an individual seller offers for sale in the
market for a stated period for varied prices.

MARKET SUPPLY
The market supply is the total quantity of a good or service all producers are willing to
provide at the prevailing set of relative prices during a defined period.

SUPPLY VS STOCK
Supply refers to the quantity that the producer is willing to offer for sale which changes with a
change in price whereas stock relates to a particular point in time.

INDIVIDUAL SUPPLY SCHEDULE

An individual supply schedule refers to a tabular statement showing various quantities of a
commodity that a producer is willing to sell at various levels of prices during a given period.

PRICE QUANTITY
(Rs) SUPPLIED OF GOOD X
1 5
2 10
3 15
4 20
5 25

As seen in the schedule, the quantity supplied of commodity X increase with the price
increase. The producer is willing to sell 5 units of X at a price of Rs1

MARKET SUPPLY SCHEDULE

A market supply schedule refers to a tabular statement showing the various quantities of a
commodity that all the producers are willing to at various levels of price during a given
period. It is contained by adding all the individual supplies at every level of price.

PRICE INDIVIDUAL SUPPLY MARKET SUPPLY

1 5 10 5+10=15
2 10 15 10+15=25
3 15 20 15+20=35
4 20 25 25+25=45
5 25 30 25+30=55

As shown in the table market supply is shown by adding the supply of supplies A and B at
different prices.

SUPPLY CURVE
INDIVIDUAL SUPPLY CURVE
An individual supply curve refers to a graphical representation of an individual supply
schedule curve is obtained by plotting the points. At each possible price, there is a quantity
that the firm is willing to sell.

MARKET SUPPLY CURVE

A market supply curve refers to a graphical representation of market supply it is obtained by
horizontal summation of individual supply curves. We sum the individual supply curve
horizontally to obtain the market supply curve. That is to find the total quantity supplied at
any price, we add the individual quantities, which are found on the horizontal axis of the
individual supply curve. The market supply curve shows how the total quantity supplied
varies as the price & the goods vary; holding constant all the other factors.

FACTORS AFFECTING INDIVIDUAL SUPPLY

PRICE OF GIVEN COMMODITY
The most important factor determining the supply of a commodity and its price As a
general rule price of a commodity and its supply are directly related. It means a prices
increase the quantity supplied of the given commodity also rises and vice-versa.

PRICE OF OTHER GOODS

As resources have alternative uses the quantity supplied of a commodity depends not
only on price but also on the price of another commodity. Increases in the price of other
commodities make them more profitable in comparison to the given commodity.

PRICE OF FACTORS OF PRODUCTION

When the amount payable to the factor of production and cost of inputs increases, the
cost of production also increases which decreases the profitability.

STATE OF TECHNOLOGY
Technologies charges influence the supply of a commodity advanced and improved
technology reduces the cost of production, which are the profit margin it induces the
seller to increase the supply.

GOVERNMENT POLICY
An increase in taxes raises the cost of production and thus reduces the supply due to
lower profits margin on the other hand tax concessions and subsidies increase the
supply as they make it more profitable for the firm to supply goods.

GOALS/OBJECTIVES OF THE FIRMS

Generally, the supply of a commodity increases only at high prices as it fulfills only profit
maximization however with the change in trend. Some firms are willing to supply more
even at these prices.

FACTORS AFFECTING MARKET SUPPLY

NUMBER OF FIRMS IN THE MARKET
When the number of firms in the industry increases market supply also increases due
to a large number of products producing that commodity however market supply will
decrease if some of the firms start learning the industry due to losses.

FUTURE EXPECTATIONS REGARDING PRICE

If a seller expects a rise in price in near future, the current market supply will decrease
to rise the supply in the future of higher prices.

MEANS OF TRANSPORTATION AND COMMUNICATION

Proper infrastructural development, like improvement in the means of transportation
and communication, helps to maintain an adequate supply of the commodity.

LAW OF SUPPLY
The Law of supply states that the quantity of a commodity supplied varies directly with its
price. Other determined of supply remaining constant. Thus the price of a commodity and the
quantity supplied is moved in the same direction. When the price rises quantity supplied also
rises and when the price falls. Quantity supply also reduces other things remaining the
same. The reason why a firm is willing to sell more quantity of a good at the highest price is
found in the law of diminishing returns.

ELASTICITY OF SUPPLY
Define supply function.

It explains the functional relationship between the supply of a commodity and the
determinants of supply

Sy = f(Px, Py, Pr, G,T,Tc)

Sx = supply of commodity x

Px = price of the commodity x

Py = price of related goods

Pi = price of inputs

Pg = goals of the firms

Tc = Tax rate

Price elasticity of supply refers to the degree of repossesses of supply of a commodity which
references to changes in prices of such commodity.

PERFECTLY ELASTIC SUPPLY

When there is an infant supply at a particular price and the supply becomes zero with a slight
fall in price when the supply of such as commodity is said to be perfectly elastic.

Price(Rs) Supply (units)

20 20
30 20
40 20

PERFECTLY INELASTIC SUPPLY

When the supplier does not change with a price change, then the supply for such a
commodity is said to be perfectly elastic.

HIGHLY ELASTIC SUPPLY

When the percentage change in quantity supplied is more than the percentage change in
price than supply for such a commodity is said to be highly elastic.

Price(Rs) Supply (Units)

10 100
15 200

LESS ELASTIC SUPPLY

When the percentage change in quantity supplied is more than the percentage change in
price the supply for such a commodity is said To be less elastic.

UNITARY ELASTIC SUPPLY

When the percentage change in quantity supplied is equal to the percentage change in price
then supply for such a commodity is said to be unitary elastic.

CHANGE IN SUPPLY
When there is an increase in supply, demand remains unchanged the supply course of it
toward the right from ss to s1 s2
New equilibrium-at determined at E1
Equilibrium price-falls from op to op1
EquEquilibrium quantity sets from OQ to OQ

Price(Rs) Supply (Units)

20 100
20 150

When supply increases to S1 S1 it creates a price on OP this leads to competition among

sellers which reduces the price Decrease in price leads to a rise in demand and a fall in
supply. This change continues to hill the new equilibrium is established at point E1
equilibrium price falls from OP to OP1 and equilibrium rises from OQ to OQ1
DECREASE IN SUPPLY
When the supply decreases, demand remains unchanged then the supply curve shift to the
left from SS to S1 S2When supply decreases to S1 S2, it creates an excess demand at the
old equilibrium price of OP this leads to competition among buyers, which raise the price
increase in price leads to rising leads to rise in supply and fall in demand. These changes
continue till the new equilibrium to established at point E.

PRICE FLOOR

The government also intervenes in the process of prices determination through the price
floor price flow refers to the minimum price ( above the equilibrium price) fixed by the
government. which flu producers must be paid for their producers

When government feels that the price fixed by the forces of demand and supply is not
remunerative from the producer’s point of view it fixes prices (known as a price floor)
which is more than the equilibrium price.

Most well-known examples of impossible price flofloorse agriculture price support

programs and minimum legislation

Indian Government maintains a variety of price support programs for various

agricultural prproductsike wheat sugarcane etc and the floor is normally set a at level
higher than the market-determined price for their goods.

This effect of floor prices can be better understood with the help of the figure

FERTILIZER MARKET
Demand for food and biofuels constantly increasing.

With the increase in demand for fertilizer for crop growth.

REASONS
Population growth.

Shrinking world grain stock.

Appetite for corn.

Growing demand for food especially meat.

PROBLEM
The fertilizers miners and factories are having trouble keeping up.

The supply of fertilizer is inelastic.

The more inelastic supply, the faster prices rise when demand increases.

REASONS FOR INELASTIC

Not enough substitutes.

Environmental issues.

Causes depletion of fossil fuel.

Water pollution due to nitrogen release.

Dangerous to marine life.

EFFECT OF FERTILIZER ON PRICE

Fertilizers are input into food production as fertilizers price rises.

The supply of food decreases.

Loss of food availability.

Higher food prices.

Lead to a search for substitutes for fertilizers.

ACKNOWLEDGEMENT
I would like to express my sincere gratitude towards my economics teacher Ms. Kanika
Marwaha for her vital support, guidance, and encouragement without which this project
would not come forth from my side she helped me in completing the project by giving me
ideas, thoughts, and made, this project easy and accurate as well as informative. I wish to
thank my parents for their undivided support and interest without which I would be unable to
complete my project.

CERTIFICATE
This is to certify that MANSI SINGH of class 12-C has completed her project file under my
supervision. She has taken proper care and sincerity in the completion of this project. I
certify that this project is up to my expectations and as per the CBSE guidelines

Teacher’s Signature Principal

External Examiner

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