Google
Saturday 
November 22, 2014 

AmosWEB means Economics with a Touch of Whimsy!

AmosWEBWEB*pediaGLOSS*aramaECON*worldCLASS*portalQUIZ*tasticPED GuideXtra CrediteTutorA*PLS
Today's Index
Yesterday's Index
231.2

Help us compile the AmosWEB Free Lunch Index. Tell us about your last lunch.

Skipped lunch altogether.
Bought by another.
Ate lunch at home.
Brought lunch from home.
Fast food drive through.
Fast food dine in.
All-you-can eat buffet.
Casual dining with tip.
Fancy upscale with tip.

More About the Index
Favorite dead person to dine with?

Abraham Lincoln.
Jesus.
Albert Einstein.
Adam Smith.
Socrates.
Buddha.

VERY SHORT RUN, MICROECONOMICS: A production period of time in which at all inputs in the production process are fixed, meaning the quantity of output itself is fixed. Also termed market period, the very short run exists if the period is so short that no additional production is possible. In other words, the good has been produced, all that remains is to sell it. This is one of four production time periods used in the study of microeconomics. The other three are short run, long run, and very long run.

Visit the GLOSS*arama


SUPPLY CURVE:

A graphical representation of the relation between the supply price and quantity supplied, holding all ceteris paribus supply determinants constant. A supply curve graphically illustrates the law of supply, the direct relation between supply price and quantity supplied for a particular good. It is one half of the standard market model. A demand curve is the other half.
A supply curve is a useful graph that can summarize several of the more important aspects of supply. It graphically illustrates the law of supply and when combined with the demand curve forms the market model, one of the most useful tools found in economic analysis.

Plotting the Numbers

A supply curve is commonly derived from a simple supply schedule, such as the one for stuffed Yellow Tarantulas, a cute and cuddly stuffed creature from the Wacky Willy Stuffed Amigos line of collectibles, shown in this exhibit. This schedule illustrates the law of supply relation between supply price and quantity supplied. As the supply price increases from $5 to $50, the quantity supplied increases from 0 to 900 Yellow Tarantulas.
Supply ScheduleSupply Curve

Transferring the price-quantity pairs from the supply schedule to a graph reveals the supply curve for stuffed Yellow Tarantulas. This task is easily accomplished by clicking the [Plot] button. A $5 price is associated with 0 stuffed animals, a $10 price goes with 100 stuffed animals, and on it proceeds, until finally a $50 price is paired with 900 stuffed animals.

The supply curve is finalized by connecting these 10 points with a continuous line. The 10 prices corresponding to these 10 points, are but 10 of an infinite number of prices, each with a corresponding quantity. A continuous line includes these other possibilities. To reveal this line, click the [Draw] button. The end result is the supply curve.

What It All Means

Here are a few observations about this supply curve.
  • First, as the price increases from a low of $5 to a high of $50, the quantity supplied of Yellow Tarantulas increases from 0 to 900. Higher prices are related to larger quantities. This relation, this direct relation between supply price and quantity supplied, IS the basic law of supply.

  • Second, the supply curve represents maximum quantities and minimum prices. That is, if the price is $10, then the maximum quantity supplied is 100 Yellow Tarantulas. It is not 150, nor even 101, but only 100. Alternatively, if sellers offer 100 Yellow Tarantulas for sale, then the minimum supply price they are willing and able to accept is $10, not $5, not even $9.99, but $10.

  • Third, this whole curve, every price-quantity combination on the curve, is supply. Supply is the entire range of prices and quantities, all pairs. Supply is the entire curve. In contrast, quantity supplied is any specific number of Yellow Tarantulas sellers are willing and able to sell at a specific supply price. Selecting a different price generates a different quantity supplied. Quantity supplied is a point on the curve.

  • Fourth, this supply curve represents hypothetical possibilities. It suggests a "What if" relation between supply price and quantity supplied. It indicates quantity supplied given a supply price, or supply price given the quantity supplied. If, for example, the supply price is $10, then sellers are willing and able to sell 100 Yellow Tarantulas. This does not mean that sellers will sell, are selling, or ever will sell 100 Yellow Tarantulas. It only indicates what they would sell at a $10 price.

<= SUPPLY BY A FIRMSUPPLY DECREASE =>


Recommended Citation:

SUPPLY CURVE, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2014. [Accessed: November 22, 2014].


Check Out These Related Terms...

     | supply price | quantity supplied | law of supply | supply space | producer surplus | supply determinants | change in supply | change in quantity supplied | demand curve |


Or For A Little Background...

     | supply | supply schedule | market | quantity | price | opportunity cost | limited resources | economic analysis | exchange | scarcity | good | service | production |


And For Further Study...

     | market supply | competition | value | production possibilities | competitive market | efficiency | law of increasing opportunity cost | short-run production analysis | marginal cost | marginal cost curve | marginal product | law of diminishing marginal returns |


Search Again?

Back to the WEB*pedia


APLS

State of the ECONOMY

U.S. Exports
September 2014
$195.6 billion
Down 1.5% from Aug. 2014: Econ. Stat. Admin.

More Stats

YELLOW CHIPPEROON
[What's This?]

Today, you are likely to spend a great deal of time watching infomercials wanting to buy either a computer that can play music and burn CDs or a T-shirt commemorating last Friday (you know why). Be on the lookout for the happiest person in the room.
Your Complete Scope

This isn't me! What am I?

One of the largest markets for gold in the United States is the manufacturing of class rings.
"Genius is an infinite capacity for taking pains. "

-- Jane Ellis Hopkins, writer

AAO
Authorized Acquisition Objective
A PEDestrian's Guide
Xtra Credit
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.

User Feedback



| AmosWEB | WEB*pedia | GLOSS*arama | ECON*world | CLASS*portal | QUIZ*tastic | PED Guide | Xtra Credit | eTutor | A*PLS |
| About Us | Terms of Use | Privacy Statement |

Thanks for visiting AmosWEB
Copyright ©2000-2014 AmosWEB*LLC
Send comments or questions to: WebMaster