MARKET SUPPLY Microeconomics Made Easy by Dr. William Yacovissi Mansfield University

SUPPLY l The fact that a company should hire variable inputs until those inputs become less productive, leads to the existence of a market supply curve. l A market supply curve shows the amount that producers are willing to supply at various prices.

SUPPLY l Supply shows the positive relationship that exists between the price of a product and the amount that producers are willing to supply. l Like demand, supply can be shown as a table, a graph, or an equation

SUPPLY AS A TABLE

SUPPLY AS A GRAPH

SUPPLY AS AN EQUATION l The equation: Quantity Supplied = 100(Price) fits the data for the demand for video rentals shown in the table and graph. l Do you see why the table, graph, and equation are all equivalent ways to show supply.