Just like a treasure map shows where the treasure is buried, a supply curve is a graph that paints a picture of the relationship between the price of a product (say, chocolate-coated marshmallows ๐ซ) and how much of it businesses are willing to make and sell over a certain period. Picture it this way, the vertical 'y' axis is your price meter while the horizontal 'x' axis is your quantity counter. As the price rises, so does the quantity supplied.
The supply curve slopes upwards just like a hiking trail up a mountain. That's because it follows the law of supply which says the higher the price, the more a business is willing to produce and sell (after all, who wouldn't want to earn more?). So, think of your hiking pace as the willingness to produce. The higher you go (price), the faster you want to move (quantity supplied).
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Just like a treasure map shows where the treasure is buried, a supply curve is a graph that paints a picture of the relationship between the price of a product (say, chocolate-coated marshmallows ๐ซ) and how much of it businesses are willing to make and sell over a certain period. Picture it this way, the vertical 'y' axis is your price meter while the horizontal 'x' axis is your quantity counter. As the price rises, so does the quantity supplied.
The supply curve slopes upwards just like a hiking trail up a mountain. That's because it follows the law of supply which says the higher the price, the more a business is willing to produce and sell (after all, who wouldn't want to earn more?). So, think of your hiking pace as the willingness to produce. The higher you go (price), the faster you want to move (quantity supplied).
Dive deeper and gain exclusive access to premium files of Economics SL. Subscribe now and get closer to that 45 ๐