What Are Supply and Demand Curves?
A supply curve is a geometric graph that represents the functional relationship between the price of a commodity and the quantity supplied. To put it simply, it refers to the curve linking price to supply. Supply refers to the quantity that individual manufacturers are willing to sell a certain commodity under certain conditions and under certain conditions. The supply curve slopes up and to the right, because other things being equal, a higher price means more supply. [1]
Supply curve
- The supply curve is a geometric relationship between the price of a commodity and the quantity of supply.
- The total amount of products that all manufacturers are willing to supply depends on the price they receive when they supply them, and the labor and other costs they must pay to produce them.
- 1. The supply curve slopes to the upper right with a positive slope.
- 2. The supply curve can be either a straight line or a curve.
- 3. Supply and supply have different meanings.
- 4. There is more than one supply curve, there are countless.
- 5. The above characteristics are simply the characteristics of the supply line. Specific analysis of the ultra-long-term, long-term, and short-term, the supply line will maintain a different shape. [3]
- Commodity supply table: A numerical sequence table showing the relationship between various prices of a certain product and the supply quantity of the product corresponding to the various prices.
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- Supply table for a commodity
- OQ on the horizontal axis in the figure
- The typical labor market has an irregular supply curve. Wages rise to a certain level. As wages increase further, the supply of workers' labor decreases, and the curve bends to the left.
- In special commodity markets such as ancient calligraphy and painting, the supply curve may also be irregular. It presents a straight line perpendicular to the horizontal axis.
- There is also an item where the rate of cost reduction is greater than the rate of price decline. According to our normal thinking, if prices fall, manufacturers will necessarily reduce supply in order to chase profits. However, in this case, costs are also reduced and the rate of decrease is faster than the rate of price decline, manufacturers are still willing to produce The graph of the supply curve is convex toward the origin.