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Supply curve

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The supply curve slopes upwards toward the right.
The vertical aspect of the supply curve is taken as where output gravitates towards in the long run.
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The Supply Curve is a visual representation of the total amount of some good or service in an economy often used by economists. The supply curve is a line that slopes upward toward the right.[1]

Supply[edit]

Supply is generally meant as the supply curve. The curve represents the relationship between prices and the amount of a good or service producers will offer for said prices.[2] As prices go up, producers offer more supply to capitalize on the potential revenues. The point where the supply and demand curves intersect(equilibrium) is where the price of something is determined. Some representations show the long run aggregate supply(LRAS) curve as a perfectly vertical curve that slowly shifts rightward, representing economic growth.

Quantity Supplied[edit]

The quantity supplied of something refers to how much of an actual good or service is available at a point on the curve. If demand curve for sugar beets falls, the total supply curve may stay the same but the actual quantity supplied will change.[3]

See Also[edit]

References[edit]

  1. "Law of supply". Khan Academy. Retrieved 2020-01-26.
  2. "Supply curve | economics". Encyclopedia Britannica. Retrieved 2020-01-26.
  3. Kenton, Will. "Tracing the Supply Curve". Investopedia.