Supply Answers

A supply curve shows the quantities of a good or service that producers are willing and able to sell at different prices, assuming other factors stay the same.

Weather can change producers’ ability to produce goods. For example, favorable weather can lead to a larger harvest and increase supply, while droughts, floods, or storms can damage crops and decrease supply. These changes shift the supply curve.

A shift in the supply curve occurs when a factor other than the good’s own price changes how much producers are willing and able to sell at each price. An increase in supply shifts the curve to the right; a decrease shifts it to the left.

Three production costs that can shift supply are wages paid to workers, the cost of raw materials, and energy costs. If these costs rise, producing goods becomes more expensive and supply may decrease; if they fall, supply may increase.

A fixed supply means that the quantity available does not change when the price changes. Its supply curve is a vertical line, which shows that the same quantity is supplied at every price.

Supply is the quantity of a good or service that producers are willing and able to sell at different prices during a given period. The law of supply says that, other things being equal, producers offer more for sale when the price rises and less when the price falls.