The amount of goods that producers are willing and able to offer to customers at a given price
Supply curve
Upward sloping (the curve slopes up from left to right)
Shows the proportionate relationship between price and quantity supplied
When price goes up
Quantity supplied will go up
When price goes down
Quantity supplied will also go down
Reason for upward sloping supply curve
Businesses are motivated by profit. If prices are rising, existing businesses will be willing to supply an increasing amount of a good because they may make more profit.
Movement along the supply curve
When the price of a good changes
Shift in the supply curve
Movement to the left or right of the entire supply curve when there is a change in any factor affecting supply (except the price)
Fixed supply
In some circumstances, the supply of a product or service maybe fixed
Supply curve with fixed supply
Vertical
With a fixed supply, it is impossible for sellers to increase supply even when prices rise
