Supply Analysis and Market Equilibrium — full notes
Economics · Microeconomics - Supply and Equilibrium
Supply Analysis and Market Equilibrium
1. Definition and the law of supply
Supply is the quantity of a good producers are willing and able to sell at a given price. Law of supply: as price rises, quantity supplied rises, all else equal.
2. Individual vs market supply
Individual supply is one producer's supply at each price; market supply is the horizontal sum of all producers' supply.