General Economics/Supply

Supply is the amount a producer is willing and able to produce at the available prices in the market. Government inﬂuences supplies of many goods. Governments send out subsidies that pay and support a business or market. This affects many industries. Government can also place an excise tax in goods. These represent ways that government affect supply. Changes in the global economy such as import restrictions affect supply. This also includes inﬂation and number of suppliers.