Supply curve

Examples of Supply curve in the following topics:

• Market Supply

  • Market supply is the summation of the individual supply curves within a specific market where the market is characterized as being perfectly competitive.
  • As a result, the supply curve is upward sloping .
  • Market supply is the summation of the individual supply curves within a specific market.
  • The market supply curve is simply the sum of every seller's individual supply curve.
  • The market supply curve is an upward sloping curve depicting the positive relationship between price and quantity supplied.

• Supply Schedules and Supply Curves

  • A supply schedule is a tabular depiction of the relationship between price and quantity supplied, represented graphically as a supply curve.
  • The supply curve is a graphical depiction of the supply schedule that illustrates that relationship between the price of a good and the quantity supplied .
  • The supply curves of individual suppliers can be summed to determine aggregate supply.
  • The supply curve is a graphical depiction of the price to quantity pairings presented in a supply schedule.
  • Explain the price to quantity relationship exhibited in the supply curve

• Changes in Supply and Shifts in the Supply Curve

  • The supply curve depicts the supplier's positive relationship between price and quantity.
  • The change in price will result in a movement along the supply curve, called a change in quantity supplied, but not a shift in the supply curve.
  • Holding all else the same, the supply curve would shift inward (to the left), reflecting the increased cost of production.
  • The supply curve will shift in relation to technological improvements and expectations of market behavior in very much the same way described for production costs.
  • Distinguish between shifts in the supply curve and movement along the supply curve

• Long Run Supply Decisions

  • The long-run supply curve of a market is the sum of a series of short-run supply curves in the market ().
  • Prior to determining how the long-run supply curve looks, its important to understand short-run supply curves.
  • When this occurs, the supply curve slopes upward.
  • A market's long-run supply curve is the sum of the market's short-run supply curves taken at different points of time.
  • A long-run supply curve connects the points of constant returns to scales of a markets' short-run supply curves. ; the bottom of each short-term supply curve's "u."

• The Slope of the Long-Run Aggregate Supply Curve

  • The long-run aggregate supply curve is perfectly vertical; changes in aggregate demand only cause a temporary change in total output.
  • The long-run aggregate supply curve is static because it shifts the slowest of the three ranges of the aggregate supply curve.
  • The long-run aggregate supply curve can be shifted, when the factors of production change in quantity.
  • This graph shows the aggregate supply curve.
  • Assess factors that influence the shape and movement of the long run aggregate supply curve

• Determinants of Supply

  • Supply levels are determined by price, which increases or decreases supply along the price curve, and non-price factors, which shifts the entire curve.
  • Number of suppliers: As more firms enter the industry the market supply curve will shift out driving down prices.
  • The market supply curve is the horizontal summation of the individual supply curves.
  • For example, a technological improvement that reduces the input cost of a product will shift the supply curve outward, allowing suppliers to provide a greater supply at the same price level.
  • If the price of a good changes, there will be movement along the supply curve.

• The Slope of the Short-Run Aggregate Supply Curve

  • In the short-run, the aggregate supply curve is upward sloping.
  • It is possible for the short-run supply curve to shift outward as a result of an increase in output and real GDP at a given price .
  • As a result, the short-run aggregate supply curve shows the correlation between the price level and output.
  • This graph shows the aggregate supply curve.
  • In the short-run the aggregate supply curve is upward sloping.

• Impact of Changing Price on Producer Surplus

  • Producer surplus is affected by changes in price, the demand and supply curve, and the price elasticity of supply.
  • Decreases in the supply curve will cause decreases in producer surplus.
  • Increases in the supply curve will cause increases in producer surplus.
  • At an initial supply represented by the "Supply (1)" curve, producer surplus is the blue triangle made of $P_1$, $A$, and $C$.
  • The producer surplus is directly above the supply curve and is shaded in blue.

• Introducing Aggregate Supply

  • In the short-run, the aggregate supply is graphed as an upward sloping curve.
  • The short-run aggregate supply curve is upward sloping because the quantity supplied increases when the price rises.
  • As a result, there is a positive correlation between the price level and output, which is shown on the short-run aggregate supply curve.
  • In the long-run, the aggregate supply is graphed vertically on the supply curve.
  • The long-run aggregate supply curve is static because it is the slowest aggregate supply curve.

• Shifting the Phillips Curve with a Supply Shock

  • Aggregate supply shocks, such as increases in the costs of resources, can cause the Phillips curve to shift.
  • Stagflation caused by a aggregate supply shock.
  • The increased oil prices represented greatly increased resource prices for other goods, which decreased aggregate supply and shifted the curve to the left .
  • In this example of a negative supply shock, aggregate supply decreases and shifts to the left.
  • Give examples of aggregate supply shock that shift the Phillips curve