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Overview

A supply curve can be created both for an individual supplier and for all firms which produce the good.

A supply curve shows the quantity suppliers are willing to produce at different price levels. It is an upward sloping curve from left to right because greater quantities will be supplied at higher prices.


As the price increases from P1 to P2, the quantity supplied rises from Q1 to Q2.

Individual supply

An individual firm's supply shows the quantity of the good that the individual firm would want to supply to the market at any given price.

Market supply

The market supply is the total quantity of the good that all firms in the market would want to supply at a given price

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Supply curve

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