![]() Alternatively, supply curves are also the graphical representation of supply schedules. One can simply look at the supply curves of two firms and distinguish between them. The shape of the curve points out the characteristics of a firm.Īlso, a supply curve is a good measure of comparison. This indicates the direct relationship between the quantity of a commodity supplied and its price, keeping other factors constant. ![]() Unlike a demand curve, supply curve slopes upwards. The supply curve is the locus of all the points showing various quantities of a commodity that a producer is willing to sell at various levels of prices, during a given period of time, assuming no change in other factors. Observe that this definition has four essential dimensions- quantity of a commodity, willingness to sell, price of commodity and period of time. Technically, supply refers to the quantity of a commodity that a firm is willing and able to supply at a given period of time, at a given price.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |