This week in class we learned about supply. Supply is what producers are willing to sell because they have the ability and willingness to do so. Producers are willing to make more of their product for a higher price. This is obvious to us, because the reason producers are making their product is to make money. This concept is also called the law of supply. We also talked about all of the factors that move a supply curve. Some of the factors are input; meaning the cost to make a product, labor productivity, technology, government actions, producer expectations and number of producers.
I think the two that are the most important are government actions and technology. Today in the news we hear all the time about government regulating businesses, taxing or providing subsidies. The government can either help or hinder producers. Technology is also very important. Our society is constantly growing and coming up with new ideas. The amount of technology we use today even on a daily basis is pretty impressive. I'm sure there will be new and innovative technology to come in the future. I think all of these factors are equally important to understanding the role of supply in economics.
I think that the factors of government action and technology are important to supply too. I also think that labor productivity is extremely important. The workers are what make the whole operation possible. Without people there to make the product, then nothing can be produced and the supply will be nonexistent. You make excellent points though about how the government can make or break a business. The government can make it very difficult for a business to get back on its feet. Technology is what is making progress possible in these businesses too.
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