supply chain

Examples of supply chain in the following topics:

• Production Recipients

  • When designed well, a supply chain is able to respond to shifts in demand and changes in the marketplace.
  • Based on these shifts, the supply chain is able to alter production levels accordingly so that supply can meet demand so that the firm is able to maximize its profit.
  • Supply chains vary based on industry, the resources of the manufacturer, and market conditions.
  • Some typical elements and actors in a supply chain include:
  • This represents the typical supply chain for a computer.

• Changes in Demand and Supply and Impacts on Equilibrium

  • Supply shifts are defined by more or less of a particular product/service being available to fulfill a given demand, affecting the equilibrium point by shifting the supply curve upwards or downwards.
  • Supply shifts can also be a result of technological advances, over-utilization or consumption, globalization, supply-chain efficiency, and economics.
  • Due to the demand curve sloping downward and the supply curve sloping upwards, they inadvertently will cross at some given point on any supply/demand chart.
  • In this supply and demand chart we see an increase in the supply provided, shifting quantity to the right and price down.
  • Illustrate how changes in supply or demand impact the market equilibrium

• Supply Schedules and Supply Curves

  • A supply schedule is a tabular depiction of the relationship between price and quantity supplied, represented graphically as a supply curve.
  • A supply schedule is a table that shows the relationship between the price of a good and the quantity supplied.
  • The supply curve is a graphical depiction of the supply schedule that illustrates that relationship between the price of a good and the quantity supplied .
  • The supply curves of individual suppliers can be summed to determine aggregate supply.
  • One can use the supply schedule to do this: for a given price, find the corresponding quantity supplied for each individual supply schedule and then sum these quantities to provide a group or aggregate supply.

• Introducing Aggregate Supply

  • Aggregate supply is the total supply of goods and services that firms in a national economy plan to sell during a specific time period.
  • The short-run aggregate supply curve is upward sloping because the quantity supplied increases when the price rises.
  • In the long-run, the aggregate supply is graphed vertically on the supply curve.
  • The long-run aggregate supply curve is static because it is the slowest aggregate supply curve.
  • Aggregate supply is the total quantity of goods and services supplied at a given price.

• Measuring the Price Elasticity of Supply

  • The price elasticity of supply is the measure of the responsiveness of the quantity supplied of a particular good to a change in price.
  • In this case, the price elasticity of supply determines how sensitive the quantity supplied is to the price of the good.
  • When calculating the price elasticity of supply, economists determine whether the quantity supplied of a good is elastic or inelastic.
  • PES = 0: Supply is perfectly inelastic.
  • PES = infinity: Supply is perfectly elastic.

• Determinants of Supply

  • Supply levels are determined by price, which increases or decreases supply along the price curve, and non-price factors, which shifts the entire curve.
  • Supply is the quantity of a good or service that a supplier provides to the market.
  • The market supply curve is the horizontal summation of the individual supply curves.
  • These regulations can affect a good's supply.
  • If the price of a good changes, there will be movement along the supply curve.

• Market Supply

  • Market supply is the summation of the individual supply curves within a specific market where the market is characterized as being perfectly competitive.
  • As a result, the supply curve is upward sloping .
  • Market supply is the summation of the individual supply curves within a specific market.
  • The market supply curve is simply the sum of every seller's individual supply curve.
  • The market supply curve is an upward sloping curve depicting the positive relationship between price and quantity supplied.

• Changes in Supply and Shifts in the Supply Curve

  • The supply curve depicts the supplier's positive relationship between price and quantity.
  • The change in price will result in a movement along the supply curve, called a change in quantity supplied, but not a shift in the supply curve.
  • Changes in supply are due to non-price changes.
  • The supplier will supply less at each quantity level.
  • Distinguish between shifts in the supply curve and movement along the supply curve

• Macroeconomic Equilibrium

  • There are four basic laws of supply and demand.
  • The laws impact both supply and demand in the long-run.
  • Aggregate supply is the total supply of goods and services that firms in a national economy plan on selling during a specific time period.
  • This graph shows the three stages of aggregate supply.
  • Changes in aggregate supply cause shifts along the supply curve.

• Definition of Price Elasticity of Supply

  • The price elasticity of supply is the measure of the responsiveness in quantity supplied to a change in price for a specific good.
  • The price elasticity of supply (PES) is the measure of the responsiveness in quantity supplied (QS) to a change in price for a specific good (% Change QS / % Change in Price).
  • PES = 0: The supply curve is vertical; there is no response of demand to prices.
  • Supply is "perfectly inelastic."
  • Supply is "perfectly elastic."