Apr 23 2012

Law of Supply

Published by at 2:39 pm under

Ceteris paribus, there exists a direct relationship between the price of a good and the quantity supplied by producers. Explains why the supply curve slopes upwards. As the price of good rises, sellers wish to supply greater quantities as the possibility for economic profits is greater. At lower prices, less output is produced since it is harder to earn profits. Firms are profit seekers.

About the author:  Jason Welker teaches International Baccalaureate and Advanced Placement Economics at Zurich International School in Switzerland. In addition to publishing various online resources for economics students and teachers, Jason developed the online version of the Economics course for the IB and is has authored two Economics textbooks: Pearson Baccalaureate’s Economics for the IB Diploma and REA’s AP Macroeconomics Crash Course. Jason is a native of the Pacific Northwest of the United States, and is a passionate adventurer, who considers himself a skier / mountain biker who teaches Economics in his free time. He and his wife keep a ski chalet in the mountains of Northern Idaho, which now that they live in the Swiss Alps gets far too little use. Read more posts by this author

Comments Off on Law of Supply

Comments are closed at this time.