Supply (Producers)

• Supply Curve is always upwards slope

• Supply shows producers willingness and ability to sell goods/services in the market at different prices

• producers are more willing to sell more goods at a higher price. So, supply curve is upward sloping

Higher price = incentive to sell more

Determinants of Supply (things that shift the supply curve)

• price of inputs

• expectations

• taxes

• subsidies

• If production costs go up then the supply curves shifts back to the left

• If production costs go down then the supply curves shifts out to the right