ECON - Chapter 5.1 - Supply - Section 1 - What Is Supply?

How is the law of supply similar to the law of demand?

Both show he quantity affected by price.

What do points on a market supply curve represent?

Each point represents the quantity supplied by all producers in a market at a given price.

Why does a supply cure slope upward?

Price and quantity supplied have a direct relationship.

How is the law of supply different to the law of demand?

The law of supply is a direct relationship. The law of demand shows an inverse relationship.

If price of a video game increased what would the law of supply predict about the quantity supplied of the game?

The manufacturer would be willing to supply more games to the market.

Supply schedule

lists how much a good or service an individual producer is willing and able to offer for sale at each price.

Market supply schedule

lists how much of a good or service all producers in the market are willing and able to offer for sale at each price.

Market supply curve

shows the data from a market supply schedule in graph form.

Supply curve

shows the data from a supply schedule in graph form.

Supply

the desire and ability to produce and sell a product.

Law of supply

when prices decrease quantity supplied decreases; when prices increase quantity supplied increases.