Explaining the Theory of Supply
- GCSE, AS, A-Level, IB
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 28 Mar 2021
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.
In this revision video we cover the key factors affecting market supply of goods and services, look at the concept of joint supply and then work through a small selection of past multiple-choice questions
In this revision video we explore some of the reasons why it is usually assumed that a supply curve normally slopes upwards.