Supply curve

Introduction

supply curve (supply curve) geometry is a function representing the relationship between the supply amount and the price of goods, the price of the supply curves based on the supplied goods in the table - the supply the amount of composition on the plane of a graph plotted curve.

Generally, the amount of supply and price will be positively correlated. Factors affecting supply include: the price of the commodity itself, the cost of production, production technology, the relevant commodity prices and producer expectations for the future. Labor and

Source

All total product manufacturers depends on their willingness to supply these products in providing the resulting price, and their use in the production of these products must pay other factors of production cost

features

1. supply curve slopes upward slope is positive.

2. Supply curve may be a straight, may be curved.

3. Supply quantity supplied different meaning.

4. Not just a supply curve, there may be countless.

5. Above features simply supply line characteristics, particularly over long-term analysis, long-term, short term, the supply line will maintain a different morphology.

feed table

Goods feeding table: the table shows the relationship of the sequence of numbers between the various price and a commodity number corresponding to the supply and price of the various product .

a graph illustrating

a commodity supply meter

OQ horizontal axis represents the number of commodities, commodities and the vertical axis represents the OP . FIG coordinates on the plane, according to the price of the goods supplied to the table - the line corresponding coordinate points A supply amount of the composition obtained, B, C, D, E linked together, that the product supply curve. It represents producers at different price levels are willing and able to provide the number of items sold. And demand curves, as a supply curve is smooth and continuous curves, and it is based on price changes in the supply amount of the corresponding commodity has unlimited assumption of the division. As demand curve as supply curve may be linear or may be curved. If the supply function is a linear function of one dollar, the corresponding supply curve is linear, the supply curve 2 in FIG. If the supply function is a nonlinear function, the corresponding supply curve is curvilinear. Each point on the slope of the linear supply curve are equal, the slope of each point on the curved line does not equal supply.

exception

typical labor market, irregular supply curve. Wages up to a certain level, with further improve the wages, the labor supply of workers has decreased, the curve bends back to the left.

particular commodity markets such as old paintings etc., may also be supplied to an irregular curve. It is presented in a straight line perpendicular to the horizontal axis.

There is also a cost reduction rate is greater than the rate of prices of goods. According to our normal thinking to think, if prices fall, companies in pursuit of profit, which will reduce the supply, but in this case the costs are reduced and the reduced rate faster than the rate of price declines, the companies are still willing to produce , the supply pattern which is a convex curve to the origin.