Supply

What is supply?

The relationship between price and quantity supplied.

What does the law of supply state?

As price increases, quantity supplied increases, and vice versa.

Why does the supply curve slope upward?

Higher prices make it profitable for producers to supply more.

What is the supply curve also called?

The marginal cost curve or minimum price curve.

What is the difference between supply and quantity supplied?

A change in supply shifts the entire curve; a change in quantity supplied is movement along the curve caused by a change in the good's own price.

What happens to supply when input costs increase?

Supply decreases and shifts left.

What happens to supply when technology improves?

 Supply increases and shifts right.

What happens to supply when the number of firms increases?

Supply increases

What are major determinants of supply?

Input costs, prices of related goods, technology/productivity, taxes/subsidies, price expectations, and number of firms.