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Supply

The law of Supply states that as price rises, the quantity supplied rises. A Supply curve shows the relationship between price and quantity supplied. Market -day Supply is a market situation in which the quantity of a good supplied is fixed, regardless of price.

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1K views10 pages

Supply

The law of Supply states that as price rises, the quantity supplied rises. A Supply curve shows the relationship between price and quantity supplied. Market -day Supply is a market situation in which the quantity of a good supplied is fixed, regardless of price.

Uploaded by

api-181176018
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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The Law of Supply

As price rises, the quantity supplied rises, cet. par.

Reasons for the Law of Supply?


Monetary incentives The Law of Increasing Opportunity Costs

What is a Supply Schedule?


Shows the specific quantity of a good or service that suppliers are willing and able to provide at different prices

1999 South-Western College 3 Publishing

Price Quantity Supplied


$5 0

$6
$7

1
2

$8
$9 $10

3
4 5
4

1999 South-Western College 4 Publishing

What is a Supply Curve?


Depicts the relationship between price and quantity supplied

1999 South-Western College 5 Publishing

P 2 P

S
Q1
1999 South-Western College 6 Publishing

1 Q2
6

What is Market -day Supply?


A market situation in which the quantity of a good supplied is fixed, regardless of price

1999 South-Western College 7 Publishing

P 2 P

1
Q
1999 South-Western College 8 Publishing 8

What is a change in Supply?


A change in the amount supplied of a good that is caused by factors other than a change in the price of that good

1999 South-Western College 9 Publishing

Shift in Supply

S 1S2

Q
1999 South-Western College 1 Publishing 0

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