Supply

supply-- make (something needed or wanted) available to someone; provide

Individual supply -- will have an incentive to produce more of a good or service when prices rises 

Market supply- total supply of all producers 

DEFINITION- The quantity of a good or service that a supplier is willing to sell at a given price 

Positive relationshop 

-the key for producers is that a higher price increases the profitability of producing the good

WHY DOES IT SLOPE UPWARDS 

1) the profit motive 

higher prices create a greater profit 

2) costs rise as production rises 

-higher prices needed to cover costs of production 

3) New entrants 

-higher prices attract new firms into the market 

KEY FACTORS THAT WILL AFFECT SUPPLYS

Productivity 

Indirect tax

Number of firms

Technology

Subsidies

Weather

Cost…