Demand and Supply

KEY TAKEAWAYS

• The quantity supplied of a good or service is the quantity sellers are willing to sell at a particular price during a particular period, all other things unchanged.
• A supply schedule shows the quantities supplied at different prices during a particular period, all other things unchanged. A supply curve shows this same information graphically.
• A change in the price of a good or service causes a change in the quantity supplied - a movement along the supply curve.
• A change in a supply shifter causes a change in supply, which is shown as a shift of the supply curve. Supply shifters include prices of factors of production, returns from alternative activities, technology, seller expectations, natural events, and the number of sellers.
• An increase in supply is shown as a shift to the right of a supply curve; a decrease in supply is shown as a shift to the left.