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What is quantity supplied in economics?

In economics, quantity supplied describes the number of goods or services that suppliers will produce and sell at a given market price. The quantity supplied differs from the actual amount of supply (the total supply) as price changes influence how much supply producers actually put on the market.

How does price affect quantity supplied in a free market?

In a free market, higher prices tend to lead to a higher quantity supplied and vice versa. The quantity supplied differs from the total supply and is usually sensitive to price. At higher prices, the quantity supplied will be close to the total supply, while at lower prices, the quantity supplied will be much less than the total supply.

What is a total addressable market?

The total amount of money you can make selling what you’re selling is called the total addressable market, also known as total available market, or TAM for short. Another way of thinking about it is the total amount of demand that exists in the market for your product or service.

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