The Joy of Supply and Demand in Economics

What is supply in economics and what factors can cause a shift in the supply curve?

What happens to the supply of kayaks when the price of kayaks increases?

Answers:

1. A change in one of the determinants of supply

2. Sellers offer more kayaks for sale

In economics, supply refers to the amount of goods or services that sellers are willing to sell at a given price and time. A shift in the supply curve can be caused by various factors such as changes in input prices, technology, government regulations, and the number of sellers in the market.

When the price of kayaks increases, sellers will offer more kayaks for sale. This is in accordance with the law of supply, which states that when the price of a good increases, the quantity supplied by producers also increases. Therefore, as the price of kayaks goes up, sellers are motivated to offer more kayaks in the market to capitalize on the higher prices.