In economics, a market supply curve is a model showing the direct relationship between the price of a good or service and the quantity of that good or service supplied to the market by producers. The upward slope of the supply curve shows that as the price of a good or service increases, producers in the market are willing and able to produce more of the good or service for sale to buyers in the market.Know More
A market supply curve represents the rational economic behavior of all producers in a competitive market when the market price of a good or service rises or falls and all other potential market influences are held constant. In this context, a change in price is understood as a movement along the supply curve. Supply curves can also shift position.
A shift of the supply curve to the right or left is produced by any event, excluding a change in price, that causes producers to offer more or less of a good or service to the market. A shift of the market supply curve can be caused by a change in the cost of raw materials, a change in production technology, a change in the profitability of a closely related good, a change in producer expectations related to future market conditions or a change in the overall number of producers participating in a market.Learn more about Economics
A shift of the demand curve to the right represents any event, excluding a change in price, that increases the quantity of a good or service demanded by buyers in the marketplace. The demand curve is an economic model of buyer behavior showing how a change in the price of a good or service results in an inverse change in the quantity of that good or service demanded by buyers in the marketplace.Full Answer >
The supply curve slopes upward because the volume suppliers in an industry are willing to produce increases as the price the market pays increases. Under typical circumstances, the revenue and profit derived by a supplier increases as the market price rises.Full Answer >
The higher the price of a firm’s products, the more of them the firm will want to produce to maximize its revenues; as a result, its supply curve is upward-sloping, Investopedia explains. The demand curve has the opposite slope: the higher a product’s price, the less of it consumers demand.Full Answer >
In economics, a price searcher is a person who sells products, goods or services and influences the price of the item by the amount of units sold of each of these commodities. Price searchers generally set their own prices for the commodities they sell because there is a single price market present for these commodities.Full Answer >