Let's Dive Right In!

Welcome aboard, future economists! Today we're discussing a super exciting topic – Supply. Hold on! Before you yawn, I promise, by the end of this, you'll find supply just as exciting as your favorite game or book. Are you ready? Let's roll!

The term 'Supply' is like a fancy economic jargon, which, in essence, describes how companies (or "firms" as they like to say in Econ-land) behave.

It simply tells us how much of a product or service a company wants to sell at different price levels, in a specific time period. And remember, we're considering this "all else being equal" - the classic economists' phrase, "ceteris paribus". So, we're not yet factoring in things like changes in production costs, customer preferences, or whether the latest season of your favorite show has hit Netflix!

Imagine you're running a lemonade stand, the crown jewel of every American suburb. If you sell a glass of lemonade for $1, you're happy to make and sell 50 glasses a day.

But, what if we up the price? Say you can sell each glass for $2 instead. You'd probably be willing to work a bit harder, squeeze a few more lemons, and maybe make 70 glasses a day, right? That's the concept of supply - you're more willing to supply (or sell) more of your product when the price is higher.