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Supply Curve : A graph that shows the quantity supplied of a given good at different prices. This is from the video “ The Supply Curve ” in the Principles of

Supply Curve: A graph that shows the quantity supplied of a given good at different prices. This is from the video “The Supply Curve” in the Principles of Microeconomics course.

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Now that we've got the demand curve down, let's move on to the supply curve. A supply curve shows how much of a good suppliers are willing and able to supply at different prices. As with the demand curve, there's a supply curve for every good and service. And again the ideas are the same, so let's look at the supply curve for oil.


We see an intuitive relationship between price and the quantity supplied. As the price goes up, the quantity of oil that companies are willing to supply increases.


In this example, in a low price, $5 per barrel, let's say 10 million barrels of oil are supplied per day. At $20 per barrel, 25 million barrels are supplied, and at $55 per barrel, 50 million barrels are supplied. So in general, a higher price means a greater quantity supplied.

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