Supply curve

The supply curve is a graphical representation of the relationship between the quantity of a good or service that a firm is willing and able to produce, and the price at which the firm is willing to sell that good or service. The supply curve shows how many units of a good or service producers would be willing to offer for sale at different prices over a given period of time.

The supply curve of a firm is driven by the desire to make profit. When the price of a good or service increases, each unit will generate more profit for the supplier. This means that firms will be more willing to produce and sell more units of the good or service at higher prices. As a result, supply curves tend to slope upwards, indicating that as the price of a good or service increases, the quantity supplied also increases.