Final answer:
To schedule supply, suppliers consider various factors including production costs, technological advancements, market conditions, and the number of suppliers. These impact the decision of how much product to offer at different prices, as outlined in a supply schedule and represented by a supply curve.
Step-by-step explanation:
Determining when to schedule supply depends on several factors. Suppliers need to consider how much of their product to offer for sale at various prices, which largely depends on the cost of production. To make this decision, suppliers often use a supply schedule and a supply curve. The supply schedule is a table that outlines the quantity of goods that a supplier is willing to supply at different price levels. The supply curve graphically represents the relationship between the price and the quantity supplied, illustrating the law of supply which states that a higher price typically leads to a higher quantity supplied.
There are four main factors that can cause shifts in supply:
- Changes in production costs
- Technological advancements
- Expectations of future market conditions
- Number of suppliers
When analyzing an economic change, it's crucial to decide whether it affects demand or supply. This decision is based on whether the event in question aligns with demand factors or supply factors. By understanding these factors, suppliers can more effectively schedule supply to match market conditions.