Supply Curve
When considering the law of supply, we’re thinking from the perspective of the seller. If the buyer wants to purchase goods as cheaply as possible, then the seller wants to sell goods for the highest possible price. The buyer and seller’s interests are conflicted.
Here’s the definition of the law of supply: as price increases, quantity supplied increases; as price decreases, quantity supplied decreases. There’s a positive correlation between price and quantity supplied.
Study Tip: Under the law of supply: as price increases, quantity supplied increases. There’s a positive correlation between price and quantity supplied.
Here’s an example of the supply curve: