Introducing Supply and Demand
The Law of Supply
The law of supply states that there is a positive relationship between the quantity that suppliers are willing to sell and the price level.
Supply Schedules and Supply Curves
A supply schedule is a tabular depiction of the relationship between price and quantity supplied, represented graphically as a supply curve.
Market supply is the summation of the individual supply curves within a specific market where the market is characterized as being perfectly competitive.
Determinants of Supply
Supply levels are determined by price, which increases or decreases supply along the price curve, and non-price factors, which shifts the entire curve.
Changes in Supply and Shifts in the Supply Curve
The supply curve depicts the supplier's positive relationship between price and quantity.