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1. Individual Supply
  A. Meaning
 
Individual SupplyMean of a good refers to the quantities a seller is willing and able to sell at various possible prices per time period, other things being constant.
 
  B. Supply Schedule and Supply Curve
 
Similar to "demand", the supply of a product can be presented in the form of a supply schedule, e.g. :
 
 
Price of Good X ($)
Quantity Supplied per Week (units)
1
2
3
4
5
2
4
6
8
10
A supply schedule
 
  The above supply schedule can be transformed into a supply curve :
 
 
A supply curve
 
  C. The Relationship between Price and Quantity Supplied
 
Quantity SuppliedMean : a single quantity that a seller is willing and able to sell at a particular price.
 
 
The Law of Supply : a law which states that the higher the price, the greater the quantity supplied in a given period, ceteris paribus.
 
 
  • The higher the price of a good, the higher the quantity supplied of that good.
  • The lower the price of a good, the lower the quantity supplied of that good.
  • There is a positive relationship between price and quantity supplied.
 
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