Supply2 - Supply The Graphical Approach Economists...

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Supply The Graphical Approach Economists graphically represent the relationship between product price and quantity supplied with a supply curve. Typically, supply curves are upwards sloping, because as price increases, sellers are more likely to be willing to sell something. For instance, if someone offered you $10 for one of your favorite shirts, you might not want to part with it, since it wouldn't be worth it. However, if someone offered you $500 for that same shirt, you would probably consider it. Each individual seller can have their own supply curve, showing how many products they are willing to sell at any given price, as shown below. This graph shows what James's supply curve for hours of tutoring in economics might be: Figure %: James's Supply Curve To find out how many hours of tutoring James will give for a given wage (when we put a price on hours of work, we call it a wage), extend a perpendicular line from the price on the y-axis to his supply curve. At the point of intersection, extend a line from the supply curve to the x-axis
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This note was uploaded on 02/09/2012 for the course ECO ECO2013 taught by Professor Jominy during the Fall '08 term at Broward College.

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Supply2 - Supply The Graphical Approach Economists...

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