Can you explain what economists mean by supply?

Answer:
Supply is the other side, the producers' side, of the demand and supply equation. Supply refers to the behaviour of producers, who are usually business people. Profit seeking business firms seek to minimize costs and maximize revenue. They may, for example, recycle office supplies in order to minimize costs, or engage in saturation advertising in order to maximize revenue.

Supply will be influenced by these factors:

  • the price of the product
  • the cost of inputs to manufacture the product
  • the price of related products
  • producer expectations about their future
  • the state of the production technology
  • the number of producers competing in the industry

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