Question
Define market supply. Explain the factor 'input prices' that can cause a change in supply.

Answer

The sum of output of a commodity by all its producers at a given price during a given period is called market supply.
When input price rises (falls), the cost of production increases (decreases). Price of the good remaining the same, it reduces (increases) profits. So the producers produce less (more) and thus market supply decreases (increases).

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