Economics SL
Economics SL
4
Chapters
96
Notes
Unit 1 - Intro to Econ & Core Concepts
Unit 1 - Intro to Econ & Core Concepts
Unit 2 - Microeconomics
Unit 2 - Microeconomics
Unit 3 - Macroeconomics
Unit 3 - Macroeconomics
Unit 4 - The Global Economy
Unit 4 - The Global Economy
IB Resources
Unit 2 - Microeconomics
Economics SL
Economics SL

Unit 2 - Microeconomics

Unlocking The Mysteries Of The Supply Curve

Word Count Emoji
621 words
Reading Time Emoji
4 mins read
Updated at Emoji
Last edited onย 5th Nov 2024

Table of content

What is a supply curve? ๐Ÿ“ˆ

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 ๐Ÿซ) 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.

Climbing the mountain the upward sloping curve ๐Ÿ”๏ธ

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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IB Resources
Unit 2 - Microeconomics
Economics SL
Economics SL

Unit 2 - Microeconomics

Unlocking The Mysteries Of The Supply Curve

Word Count Emoji
621 words
Reading Time Emoji
4 mins read
Updated at Emoji
Last edited onย 5th Nov 2024

Table of content

What is a supply curve? ๐Ÿ“ˆ

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 ๐Ÿซ) 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.

Climbing the mountain the upward sloping curve ๐Ÿ”๏ธ

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).

Unlock the Full Content! File Is Locked Emoji

Dive deeper and gain exclusive access to premium files of Economics SL. Subscribe now and get closer to that 45 ๐ŸŒŸ