1. Supply
Unit 2: Supply and Demand

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

3. 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

4. Supply Graph
Price
Quantity S

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

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

7. 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

8. 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