How does the supply curve work?

Economics Dec 08, 2020

Expert Solution

The supply curve is a curve that shows the relationship between the quantity supplied of a product and its price. It has the number of units supplied on the horizontal axis and the price on the vertical axis.

This curve follows the law of demand which states that the quantity supplied increases with price. Following this law, the supply curve has a positive slope and slopes up from the left to the right. If we move up on the curve, the quantity supplied and the price both increase while the opposite happens when we move down the curve.

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