Supply Curve
The supply curve is an upward-sloping line showing the positive relationship between price and quantity supplied. It shows the quantities of a good that firms are willing and able to supply at various prices, holding other factors constant.
Real World
When global oil prices rose above $100 per barrel in 2022, US shale producers reactivated previously unprofitable wells, increasing the quantity of oil supplied along the existing supply curve.
Exam Focus
Distinguish a movement along the supply curve (price change) from a shift of the curve (non-price factor) — misidentifying this loses marks consistently.
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