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 >
In economics, the law of supply states that, considering all aspects equal, the price of a marketed good or service is directly proportional to the quantity supplied. As the price increases, the quantity supplied also increases. Conversely, a decrease in the price results in a decrease in the quantity.Full Answer >
The concept of demand and supply states that for a market to function, producers must provide the goods and services that customers need. "Supply" represents the amount of goods a market can provide, while "demand" stands for the amount of goods customers are willing to buy.Full Answer >
Elasticity of demand is an economics term meaning the relative change in quantity demanded for a good based on a particular price change. High price elasticity means that a particular change in price causes consumers to significantly reduce the amount of goods purchased.Full Answer >