quantity supplied of a good tends to increase as the price of the good increases. This relationship is known as the law of supply. The market supply curve is a graphical representation of the quantity of a good that all suppliers in the market are willing and able to sell at different prices. It is derived by horizontally summing the individual supply curves of all suppliers in the market. The market supply curve is upward sloping because as the price of the good increases, suppliers are willing to supply more of the good to the market. This is due to the fact that higher prices make it more profitable for suppliers to produce and sell the good.
Added by Tracy C.
Your feedback will help us improve your experience
James Kiss and 101 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
James K.
Suppose the long-run supply curve for a good is upward-sloping. The upward slope could be explained by Select one: increases in production costs resulting from more firms coming into the market a breakdown of the "free entry and exit" feature of competition a breakdown of the "price taking" feature of competition a stable demand curve for the good, that is, a demand curve that never shifts
Nick J.
The short-run aggregate supply curve has a(n) ________ slope because as prices of ________ rise, prices of ________ rise more slowly.
Haricharan G.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD