7 - Supply Schedules, Curves, and Functions Supply...

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Supply Schedules, Curves, and Functions Supply Schedule : a tabular presentation showing the total quantity of a particular good that sellers wish to sell at each price, ceteris paribus . Supply Curve: a curve or graph showing the total quantity of a good that sellers wish to sell at each price, ceteris paribus . – Price (P) is on the vertical or ‘Y’ axis. – Quantity (Q) is on the horizontal or ‘X’ axis. Supply Function : a mathematical relationship describing the total quantity of a good that sellers wish to sell at each price (note that here we have a simple one-to-one relationship between price and quantity). – e.g., Q SW = S(P W ) = P W (supply curve) –O r , P W = MC(Q W ) = Q
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Stralya’s Supply Of Water 1.50 0.00 0.50 1.00 2.25 Quantity Supplied (quarterly water production in millions of kilo liters (kL) Q sw = P Price in Dollars per kilo liter (kL) P 0.00 0.50 1.00 1.50 2.00 2.50 0.00 0.50 1.00 1.50 2.00 2.50 Million kL per Quarter Price $AU per kL
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The “Law” of Upward Sloping Supply (Cont.) • When market price rises,
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This note was uploaded on 12/16/2009 for the course AEM 2500 taught by Professor Poe,g. during the Fall '07 term at Cornell University (Engineering School).

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7 - Supply Schedules, Curves, and Functions Supply...

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