Econ: Graphing Supply


Supply v QSupplied
A supply curve shows all the prices and quantities at which producers are willing and able to sell a good or service. Producers want to sell more at a higher price and less at a lower price.

There is a difference between a change in supply and a change in quantity supplied. A change in quantity supplied is a movement along the supply curve and can be caused only by a change in the price of the good or service. At a lower price, a smaller quantity is supplied. A change in supply is a shift of the curve whereby more or less is supplied at every price. A change in technology, in production costs or in the number of sellers (firms) will cause a change in supply.

Arrows-02-june

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