SUPPLY ANALYSIS

Supply analysis for herbal medicine ( Lagundilicious, Dandelion Tea, Rosemary

Sniffer, Mintea, Hahaha Capsule, Serpent-in-can, OreganOIL, Unseetened Cranberry
Juice, Aloescious, TEAmeric) per week.
According to the law of supply, there is a direct relationship between price and
quantity supply. Also, there four different circumstances that could affect the production
of supply, these are: price of resources, number of producers, technology, taxes and
subsidies.
 price of resources
this talks about the change in the price of input, or resources. So, if there will be
an increase in the price or scarcity of the resources used to produce herbal medicine,
that would cause the supply of herbal medicines to decrease. The supply for each
herbal medicine will follows figure no. 2. The number of each herbal medicine produced
will 300-400 bottles and sachet.
 Number of producers
the number of producers could affect the production of supply in the way that
when the number of producers increases, it would increase the supply of herbal
medicines. And also, when the number of producers is limited the supply of herbal
medicine decreases as well. The supply for each herbal medicine will follows figure no.
3. The number of each herbal medicine produced will be 100-200 bottles and sachets.
 Technology
New advanced technology will cause the supply of herbal medicines to increase.
The supply for each herbal medicine follows figure no. 2. The number of each herbal
medicine produced will be 350-400 bottles and sachets.
 Taxes
This could decrease the supply of herbal medicines because taxes means taking away
money from the producers and it would cause the producers lack money to produce,
thus decrease in supply of herbal medicine. The supply for each herbal medicine follows
figure no. 3. The number of each herbal medicine produced will be 200-250 bottles and
sachets
 Price
310

275

200

180

150

150 200 250 300 350 400

Quantity
Figure no. 1: This graph shows the standard number of supplies for each herbal medicine.

Price

310

275

200

180

150

Price
150 200 250 300 350 400 Quantity
310
Figure no. 2: This graph shows shifting of the line to the right which indicates decrease of
supply
275
of herbal medicines.

200

180

150

150 200 250 300 350 400

Quantity
Figure no. 3: this graph shows shifting of the line to the left which indicates decrease
of supply of herbal medicines.