Supply is composed of 2 elements:

• ability to produce
• willingness to produce

The Law of Supply measures the quantity producers are willing to sell/supply at any given cost.

A supply schedule aids in the methods of supply by showing how much of a good or service would be supplied at different prices.

A visual representation of the supply schedule is demonstrated as a supply curve.

Qs : quantity supplied

Several determinants for the cause of shifts in the supply curve are:

• resource prices
• technology
• taxes & subsides
• prices of related goods
• expectations
• number of producers

As supply increases, the curve S1 shifts rightward to S2.

basics | supply | demand | equilibrium | shortage | surplus | graphs