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Fofino [41]
3 years ago
10

Create a supply curve. In one or two sentences, explain how quantity supplied and price are related in your example.

Social Studies
2 answers:
Sonja [21]3 years ago
7 0
<span>As the quantity supplied goes up, the price goes up, to increase profits. As the quantity goes down, the price stays high, to maintain profits. Eventually, if the quantity stays high, the price goes down to maintain sales.</span>
aleksandrvk [35]3 years ago
3 0

A supply function represents the quantity of a certain good or service that producers are willing to supply at different prices level, <em>as shown in the photo attached where a supply curve has been graphed. </em>

The law of supply states that there is a <u>direct relationship between price and quantity supplied (ceteris paribus</u>, hence, if everything else remains equal). Therefore, when the market price increases, so does the amount that producers desire to supply.

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