Supply Curve
Microeconomics
A basic diagram showing the positive relationship between price and quantity supplied, illustrating the law of supply.
Curves and Elements
supply
Supply Curve (S): Shows the positive relationship between price and quantity supplied. Slopes upward from left to right.
price change
Price Change: A rise in price from P1 to P2 causes movement along the supply curve.
quantity change
Quantity Change: Quantity supplied increases from Q1 to Q2 as price increases.
The supply curve slopes upward from left to right, showing that producers are willing to supply more at higher prices.
When price rises from P1 to P2, quantity supplied increases from Q1 to Q2.
This movement along the supply curve is caused by a change in price, not a shift in supply.
The positive relationship between price and quantity supplied is known as the law of supply.
More Microeconomics Diagrams
Explore other diagrams from the same unit to deepen your understanding
The fundamental diagram showing the relationship between demand and supply in a competitive market, determining equilibrium price and quantity.
A basic diagram showing the inverse relationship between price and quantity demanded, illustrating the law of demand.
A simple diagram showing four common forms of government intervention in markets: subsidies, taxes, price controls, and direct provision.
A diagram showing how price elasticity of demand changes along a straight-line demand curve, from elastic to unitary elastic to inelastic.
A diagram showing how price elasticity of demand affects total revenue, with total revenue maximized where demand is unitary elastic.
A diagram showing that allocative efficiency occurs where marginal benefit equals marginal cost, meaning resources are allocated to maximize welfare.