Law of Supply

Precision in Using Words or Economics as a Second Language

Changes in the Quantity Supplied


The lower the price, the smaller the quantity supplied, other things being equal.

The higher the price, the greater the quantity supplied, ceteris paribus.

There is a positive, direct, upward-sloping relationship between price and quantity.

This is illustrated by moving along a supply curve. So when the price is "low" producers are willing and able to bring "a tad" to the market and when the price is "high" producers are willing and able to bring "several" to the market.

When the price changes, there is a change in the quantity supplied.

A Change in Supply

The Supply Curve or Supply Schedule may be influenced by changes in:
  • Number of suppliers or producers in the market
  • Supplier's cost of inputs to production
  • Weather
  • Expectations
  • Price of an alternate production good
  • Technology
will cause changes in supply, so that at every price, there is a different quantity supplied.

This is illustrated by shifting the entire supply curve.

So when the price is "high" producers are now willing and able to bring "a bunch" of the good or service to market and when the price is "low" producers are now willing and able to bring "a few" of the good or service to market.

This illustrates a change in supply, where at every price there is a new quantity supplied.

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Kevin L. Carlson
last update: 2 January 2005