Supply | Definition Minute | Behavioral Economics in Marketing Podcast
Jan 17, 2023
A brisk definition of supply and how it links price to the quantity producers are willing to offer. A strawberry farmer example shows shortages and price effects. A quick list of factors that shift supply like input costs, technology, competitor numbers, expectations and policy. Short, clear and focused mini-lesson on a core economic concept.
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Supply Responds To Price
Supply measures how much producers are willing to offer at a given price and time.
Higher prices generally lead producers to supply more because firms seek to maximize profits.
question_answer ANECDOTE
Strawberry Farmer Example
Sandra uses a strawberry farmer example to show supply and price interaction.
A drought reduces quantity and drives prices up, changing how much the farmer will sell.
insights INSIGHT
Elasticity Shapes Seller Decisions
When supply falls but demand remains, prices rise dramatically.
The farmer's decision depends on the elasticity of supply, which shapes quantity sold at higher prices.
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Supply | In economics, supply is a fundamental concept that describes the amount of a given product or service that suppliers are willing to offer to consumers at a given price level at a given period. Supply can relate to the amount available at a specific price or the amount available across a range of prices. This relates closely to the demand for a good or service at a specific price; all else being equal, the supply provided by producers will rise if the price rises because all firms look to maximize profits.
📎 Definition Minute is a new subset of the Behavioral Economics in Marketing podcast. In these mini-episodes, I will define economic theories, in a minute or two. The topics will be review, introductory or discrete in nature.
Behavioral Economics in Marketing Podcast | Understanding how we as humans make decisions is an important part of marketing. Behavioral economics is the study of decision-making and can give keen insight into buyer behavior and help to shape your marketing mix. Marketers can tap into Behavioral Economics to create environments that nudge people towards their products and services, to conduct better market research and analyze their marketing mix.
Sandra Thomas-Comenole | Host | Marketing professional with over 15 years of experience leading marketing and sales teams and a rigorously quantitative Master’s degree in economics from Rensselaer Polytechnic Institute. Check out her Linkedin profile here: Sandra Thomas-Comenole, Head of Marketing, Travel & Tourism
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