THEORY OF SUPPLY
SUPPLY Supply is the quantity of goods that the producers or seller are willing and able to offer for sale at a given price and at a particular time. TYPES OF SUPPLY COMPLEMENTARY (JOINT) SUPPLY: This supply occurs when two or more commodities are produced and supplied from one source. An increase in the production and supply of one will automatically bring about increase in the production and supply of the other commodities that are produced from the same source, eg an increase in production and supply of petrol from petroleum (crude oil) can lead also to an increase in supply of kerosene and other products from crude oil. COMPETITVE (SUBSTITUTE) SUPPLY : This supply occurs when many commodities are supplied for the satisfaction of a particular want. In other words, it is the supply of two or more commodities that serves as substitute or alternative to one another, eg meat and fish, omo blue detergent and elephant blue detergent, margarine and butter. COMPOSITE SUPPLY : This supp