REPBLICA BOLIVARIANA DE VENEZUELA

MINISTERIO DEL PODER POPULAR PARA LA EDUCACIN UNIVERSITARIA

INSTITUTO UNIVERSITARIO DE TECNOLOGA LOS ANDES I.U.T.L.A.
Autorizado Por Decreto N 2447, Gaceta Oficial N 36421
SEDE SANTA BRBARA ESTADO BARINAS

Taller N 2. Parejas (25%)

Fecha:07/02/2015

Ingles II
Integrantes (N de lista):

Nota:
Instrucciones: con la ayuda del diccionario (Ingles/Espaol y con la ayuda de su compaero(a), deber traducir el Texto
de abajo. Suerte!

The Supply Theory is one of the fundamental theories of economics. It is also a

foundation on which many other theories are based. The supply theory
generates lots of other models that are equally important to economics. Supply
directly influences resource allocation. Therefore, it is a valuable tool that is
used to analyze the working of a market economy.
Definition of Supply
Supply is the quantity of goods and services that a producer is willing and able
to produce for market transaction at a given price in a given time period. The
demand of a product impacts the supply of the product and vice versa. The rise
in the market price of a product enables producers to produce more. Hence, the
rise in price means an increment in the supply. The rise in price and rise in
supply is directly proportional to each other. There are three reasons for this
condition. They are:
With

the rise in the market price the producers opportunity to make a

profit increases. They produce more output so as to sell them at a good

price in the market and gain from that.
The

large-scale production firms can adjust their cost of production with

the rising market price. In fact the producers can incur profit from this
phenomenon since they get an opportunity to not only compensate
their cost of production but also earn something more than that.
Rise

in the market price also generates scope for the other firms to

produce and sell their products, which will help them earn a good
amount of money. The rise in the market price proves to be

advantageous for these companies since they can get a fair price for
their products.

Shifts in Supply Curve

Shift in supply curve takes place due to various reasons. There are a
number of factors, which cause the shift in the supply curve. The factors
are as follows:
S
Costs

of Production are a vital factor, which causes shift in the supply

curve. The lower the cost of production the more is the supply of the
company, which in turn will contribute in the profit.
Technological

in

supply.

advancement also contributes a lot towards enhancement

Supply

of

goods

increase

with

the

technological

advancement.
Government

decisions also influences a lot towards increasing supply. If

government imposes tax on the production then the cost of production

increases which in turn decreases supply. Whereas the subsidy affects
in the opposite way. The subsidy increases the supply of a company.
Climatic

conditions also affect the supply of a good. If the weather is

favorable then the production of crops is more and if the conditions are
not conducive then the production of crops is less.
If

a substitute is produced then that affects the supply of the original.

The

number of traders in a market also increases supply. With the

increasing number of traders the supply in the market increases and

the price also decreases.