Supply
Willingness and ability to offer for sale
Quantity supplied is one point on a
supply curve
Supply
• A relationship between price and quantity
• The law of supply
– As price increases, the quantity sellers are
willing to offer increases, ceteris paribus
– A positive relationship
Remember ……
• Supply does not shift, it does not move
either to the left or to the right, unless one
or more of the factors that affect supply
changes
• A price change does NOT shift or change
SUPPLY
Factors that affect Supply
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Changes in input prices
Changes in prices of alternative outputs
Technology
Expectations
Number of sellers