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FINANCIAL TERMS

Supply

Description

Supply means the amount of a good or service that producers are willing and able to sell. In simple terms, supply shows how much of something is available. Supply is important because it affects prices, shortages, business decisions, and how markets work. When supply increases and demand stays the same, prices may fall. When supply decreases and demand stays the same, prices may rise. For example, if farmers produce more apples this year, the supply of apples increases. Supply is not the same as demand. Supply is about how much sellers can offer, while demand is about how much buyers want to buy.