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Understanding Supply Dynamics

The document discusses the law of supply, which states that the price of a product is directly proportional to the quantity supplied. It includes concepts such as supply schedules, supply curves, and the effects of changes in price on supply, distinguishing between movements along the curve and shifts in the curve. Additionally, it explains the ceteris paribus condition, which holds other variables constant while analyzing supply changes.

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202 views2 pages

Understanding Supply Dynamics

The document discusses the law of supply, which states that the price of a product is directly proportional to the quantity supplied. It includes concepts such as supply schedules, supply curves, and the effects of changes in price on supply, distinguishing between movements along the curve and shifts in the curve. Additionally, it explains the ceteris paribus condition, which holds other variables constant while analyzing supply changes.

Uploaded by

Anonymous34
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Supply

Market Law of supply Individual

All Px = Qs r One

Households Suppliers Household Supplier

Illustrated

Supply Schedule Supply Curve Equation


Market supply
Individual Supply

Q(s)= f(P(x);P(g);P(f);P(e);T(y) Q(s)= f(P(x);P(g);P(f);P(e);T(y);N;...)

Q(s) = f(P(x))
ceteris paribus

Ceteris Paribus
Positive
Ceteris Paribus = when everything else is kept constant
Relationship

Table of Price vs
Quantity supplied

P(x) changes other variables changes

change in Q(s) Change in SUPPLY

Movement along the curve Shift in Curve

Upward Downward Left Right

Decrease in Q(s) Increase in Q(s) Decrease in supply Increase in supply


Px = Qs
P(x) = Q(s) The price of the product is directly proportional to the quantity suppliedThe
higher the price, The greater the quantity suppliedFrom the viewpoint of the supplier

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