2281 · 2.4
Supply
Supply is how much producers will sell at each price. Higher prices tempt them to sell more, so the curve slopes upward. Anything that changes their costs or numbers shifts the whole curve.
Need to know
What you need to know
- Supply = the quantity producers are willing and able to sell at each price over a period.
- Law of supply: price up → quantity supplied up, other things being equal.
- Reason: higher prices raise profit and cover the cost of extra output.
- The supply curve slopes upward from left to right.
Explanation
Supply
- Supply is the quantity producers are willing and able to sell at each price.
- A higher price raises profit, so quantity supplied rises — the curve slopes up.
- A change in costs, technology, taxes, weather or the number of producers shifts the curve.
- A change in the product's own price only moves the market along the curve.