Supply curve

Definition

The supply curve is a graphical representation that shows the relationship between the price of a good and the quantity of that good that suppliers are willing to produce and sell. It typically slopes upward, indicating that higher prices incentivize producers to supply more of the product.

Related terms

Law of Supply:

It states that, all else being equal, an increase in price results in an increase in the quantity supplied.

Demand Curve:

This is a graph showing how much of a good consumers are willing to buy at different prices, usually sloping downward from left to right.

Market Equilibrium:

A situation where the quantity of a good or service supplied equals the quantity demanded at a specific price point