Remember, a supply curve is like a secret code that tells us how many units of a good or service a supplier is willing and able to produce at different prices. The higher the price, the more they're willing to produce. Why? Because higher prices = more profit! ๐ฐ
When there's a change in the price of a good, we see a movement along the supply curve. Think of it like this - you're at a carnival. You notice that the price of your favorite candy floss has increased. The candy floss vendor is thrilled, and starts making more. This is an upward movement along the supply curve! Conversely, if the price drops, the vendor would produce less, marking a downward movement.
Dive deeper and gain exclusive access to premium files of Economics HL. Subscribe now and get closer to that 45 ๐
Remember, a supply curve is like a secret code that tells us how many units of a good or service a supplier is willing and able to produce at different prices. The higher the price, the more they're willing to produce. Why? Because higher prices = more profit! ๐ฐ
When there's a change in the price of a good, we see a movement along the supply curve. Think of it like this - you're at a carnival. You notice that the price of your favorite candy floss has increased. The candy floss vendor is thrilled, and starts making more. This is an upward movement along the supply curve! Conversely, if the price drops, the vendor would produce less, marking a downward movement.
Dive deeper and gain exclusive access to premium files of Economics HL. Subscribe now and get closer to that 45 ๐