According to the law of supply

# According to the law of supply - X to the new quantity of 6...

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According to the law of supply, a  direct relationship  exists between the price of a good and the  quantity supplied of that good. As the price of a good increases, sellers are willing to supply more of  that good. The law of supply is also reflected in the upward-sloping supply curve of Figure 1  and in  the algebraic equation of the supply schedule data of Table 1  :  which has a  positive  slope of ½.  Change in the quantity supplied . A  change in the quantity supplied  is a  movement along the  supply curve  due to a change in the  price  of the good supplied. Suppose, in Figure 1  , the price  changes from \$4 to \$3. The change in the quantity supplied is found by moving along the supply  curve, in this case to the left, from the old quantity of 8 units of good
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Unformatted text preview: X to the new quantity of 6 units of good X . Change in supply. A change in supply , like a change in demand, is represented by a shift in the supply curve . Figures 2 (a) and 2 (b) illustrate two possible ways in which the supply curve for good X might shift: A leftward shift of the original supply curve, labeled S A , to the new supply curve S B , as depicted in Figure 2 (a), results in a reduced supply of good X at all prices. A rightward shift of the original supply curve S A to the new supply curve S C , as depicted in Figure 2 (b), results in an increased supply of good X at all prices....
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