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4.1.3.3. Theory of Supply (AQA A-Level Economics Teaching PowerPoint)

Level:
A-Level
Board:
AQA

Last updated 17 Aug 2023

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This editable, downloadable powerpoint covers the basic theory of supply.

Supply is defined as the quantity of a good or service that producers are willing and able to supply at a given price in each time period.

The law of supply is that as the price of a product rises, so businesses expand supply. Higher prices provide a profit incentive for firms to expand production

A supply curve shows a relationship between market price and how much a firm is willing and able to sell.

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