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Hello, in this video, we are going to answer the following question.
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Will supply curves have the same shape in all markets? if not, how will they differ? so let's first draw a typical supply curve here.
00:15
And again, we usually put quantity on the axis, price on the y -axis, and we know there's a positive relationship between quantity supply and the price of the market.
00:29
So when there's higher price in the market, suppliers are more willing to supply.
00:34
So when price are higher, quantities are higher.
00:40
And then this is our supply curve.
00:43
And our question is, will every market have that same shape of supply curve? and the answer is no, right? even though there's positive relationship between quantity supply and the price of the market, how much of quantity supply will increase might be different.
01:09
So just to be more specific.
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So suppose this is our original supply curve, right? and we see price increased from p1 to p2.
01:28
And we see that under this black supply curve, quantity also increased.
01:37
Suppose we have a steeper supply curve, which looks like this.
01:46
It's also upper sloping, but it's steeper as prime.
01:50
And suppose the price also increased from p1 to p2...