BUSAD 120 Lecture Notes - Lecture 31: Ceteris Paribus, Economic Equilibrium, Perfect Competition
Document Summary
Quantity supplied is the amount of a good that sellers are willing and able to sell. Willing = producer wants to sell that amount. Able = the amount is feasible given resources and technology. The law of supply states that, other things being equal (ceteris paribus) the quantity supplied of a good rises when the price of the good rises, and vice versa. In a competitive market we have many sellers. We need to determine the market supply. Market supply is the sum of all individual supplies for a particular good or service. A change in the price of the good generates a movement along the supply curve. This is a change in quantity supplied. A change in one or more of these other factors (i. e. in a determinant other than price) generates a shift in the supply curve, either to the left or right.
