ABSTRACT
This chapter introduces the famous relationship between supply and demand, which goes a long way toward explaining the workings of markets. In general, sellers will want to supply more of what they sell if they can get higher prices, while on the demand side, buyers will generally be willing to buy more when prices are lower. Supply schedule, a table showing the relationship between price and quantity supplied. Supply curve, a curve indicating the quantities that sellers are willing to supply at various prices. Non price determinants of supply, any factor that affects the quantity supplied, other than the price of the good or service offered for sale. When describing shifts in supply economists normally view the curves as moving horizontally (right or left), rather than vertically (up or down). In other words, when evaluating the impact of a nonprice determinant of supply, economists ask whether the change increases or decreases the quantity supplied given a stable prevailing price.
