A table showing the relationship between the price of a good and the amount of it that sellers are willing and able to supply at various prices is called a supply schedule
. Here is an example of a supply schedule:
Price ($)| Quantity Supplied (units)
---|---
2| 15
4| 30
6| 45
8| 60
10| 75
This table indicates that as the price of the good increases, sellers are willing to supply more units, illustrating the law of supply, which states there is a direct relationship between price and quantity supplied
. The supply schedule can be graphically represented by an upward-sloping supply curve , which plots price on the vertical axis and quantity supplied on the horizontal axis, showing how quantity supplied increases as price rises
. In summary:
- Supply Schedule: A table listing quantities supplied at different prices.
- Supply Curve: A graphical representation of the supply schedule.
- Law of Supply: The principle that quantity supplied increases with price.
This relationship helps determine market equilibrium when combined with demand data
