Scope of supply is the term used in contracts or technical agreements to describe the requirements of party A (the demand side) for the goods demanded by party B (the supply side). What you are required to provide - the scope of supply.
For example, I'm Party A and you're Party B. I'll buy you something. Then I will give you a scope of supply:
Scope of supply is as follows:
1, Name: Transformer Model: ABC Technical Requirements: defgsf.
2, Name: Transformer Model; CCC Technical Requirements.
3, Name: transformer accessories Model: None Technical requirements: transformer oil? Hasp etc. Complete set of accessories.
This is called the scope of supply and the region has nothing to do with the supply of goods. Party B (supply side) can not be presented to the scope of supply, unless it is the time of the offer, (in fact, the offer should not be called the scope of supply). B to Party A to submit a list of the contents of the goods involved in the name of the quantity called the supply list.
Expanded:
In the market economy, the role of prices are:
①Price is an indicator of changes in the supply and demand of commodities. With the help of prices, you can constantly adjust the production and management decisions of enterprises, adjust the direction of resource allocation, and promote the balance of total social supply and total social demand.
In the market, with the help of prices, can directly to the enterprise market supply and demand information, each enterprise according to the market price signal organization production and operation. At the same time, the level of price and determines the degree of realization of value , is an important symbol of the sales of goods on the market.
②Price level is closely related to changes in market demand. Generally speaking, in the case of a certain level of consumption, the higher the price of a commodity on the market, the lower the consumer demand for such goods; conversely, the lower the price of goods, the greater the consumer demand for it.
And when the price of such a good in the market is too high, consumers may also make the decision to buy less or not to buy such a good, or to buy other goods in place of such a good. Therefore, changes in the price level play a role in changing the quantity and direction of consumer demand, as well as the structure of demand.
Baidu Encyclopedia - Supply