Supply, Law of Supply

; firms will supply more when the price increases, as price increases, supply expands.

The supply curve represents the cost of production for firms, i.e. private cost curve=supply curve. (thinkL private benefit, private cost).

Impact of non-price changes on supply:

• changes in number of suppliers

• changes in the cost of factors of product

• changes in technology

• changes in expected future prices

• changes in prices of other goods

*the supply curve will shift left (above) for a decrease, and right for an increase (under).