Quantity supplied refers to the number of units of a

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Unformatted text preview: d, and vice versa—called a direct relationship. Quantity supplied refers to the number of units of a good produced and offered for sale at a specific price. The supply curve is an upward-sloping line (from left to right) that shows the amount of a good sellers are willing and able to sell at various prices. A market supply curve represents the sum of all individual firms’ supply curves for a particular good. Section 2 Resource prices, advances in technology, subsidies, quotas, the number of sellers, future price expectations, and weather are all factors that can cause a shift in the supply curve. The factor that causes a change in the quantity supplied is price. The elasticity of supply measures the relationship between the percentage change in price and the percentage change in quantity supplied. Supply is elastic when quantity supplied changes by a greater percentage than price. Supply is inelastic when quantity supplied changes by a smaller percentage than price. Unit-elastic supply exists when quantit...
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This document was uploaded on 01/16/2014.

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