Supply Curve
Definition
The supply curve shows the relationship between price and quantity supplied by producers in a market. It illustrates how much producers are willing and able to sell at different price levels.
Related terms
Market Equilibrium: Market equilibrium occurs when the quantity demanded equals the quantity supplied at a specific price level. It represents a balance between buyers' desires and sellers' offerings.
Elasticity of Supply: Elasticity of supply measures how responsive quantity supplied is to changes in price. If supply is elastic, it means that even small price changes lead to significant shifts in quantity supplied.
Subsidy: A subsidy is a payment or financial assistance provided by the government to producers, which helps reduce their costs of production and encourages increased supply.
"Supply Curve" appears in:
Subjects (2)
AP Macroeconomics
Intro to Business
Study guides (2)
AP Microeconomics - 2.2 Supply
AP Microeconomics - 5.3 Perfectly Competitive Labor Markets
Additional resources (1)
AP Microeconomics - Unit 2 Overview: Supply and Demand
Practice Questions (3)
Which of the following is true about the supply curve?
If the demand curve for a product shifts to the right while the supply curve remains unchanged, what is likely to happen to the equilibrium price and quantity?
What is the main impact of an excise tax on the supply curve?
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About Fiveable
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Resources
Cram Mode
AP Score Calculators
Study Guides
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Glossary
Cram Events
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Crisis Text Line
Help Center
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.