Supply Unit 2: Supply and Demand

Supply Supply is: The quantity of goods a BUSINESS is willing and able to SELL at various prices.

The Law of Supply P Qs P Qs As prices increase, the quantity supplied will increase. As prices decrease, the quantity supplied will decrease. P Qs P Qs

Supply Graph Price Quantity S

Supply - Up Price Quantity S The supply curve is upward sloping

Supply Schedule Price Quantity Supplied $2 $4 $6 $8 $10 1 2 3 4 5

At $10, the quantity supplied is 5 Supply Graph S Price Quantity $10 $8 $6 $4 $2 1 2 3 4 5 A Point A: At $10, the quantity supplied is 5

Supply: Price Changes S Point B: Price Quantity $10 $8 $6 $4 $2 1 2 3 4 5 A B S Point B: When the price is lowered to $8, the quantity supplied decreases to 4. A price change means there is movement along the supply curve