1.5 Supply
Change in
movement along the supply curve (caused by price change)
Law of Supply
Direct relationship between price and quantity supplied
Non-price determinants · PAINT
Scenarios · PAINT
In the market for automobiles: The wage rate paid to factory workers increases.
1 · Identify the determinant.
Supply schedule
| Combination | Price ($) | Quantity supplied |
|---|---|---|
| A | $0 | 0 |
| B | $10 | 10 |
| C | $20 | 20 |
| D | $30 | 30 |
| E | $40 | 40 |
| F | $50 | 50 |
Supply curve
Δ Price
–
ΔQ
–