Supply
noun · Economics
Definition
The quantity of a good that sellers are willing and able to sell at each price.
Explanation
The law of supply says that, other things equal, a higher price increases quantity supplied.
Example
A new factory increases supply.
Common confusion
A price change causes movement along the supply curve, not a shift.
Related terms
- DemandThe quantity of a good that buyers are willing and able to buy at each price.
- EquilibriumThe point where quantity demanded equals quantity supplied.
Study guides that use this term
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