Supply
| English | Chinese | Pinyin |
|---|---|---|
| law of supply | 供给定律 | gōng jǐ dìng lǜ |
| supply | 供给 | gōng jǐ |
| quantity supplied | 供给量 | gōng jǐ liàng |
| technology | 技术 | jì shù |
| tax | 税收 | shuì shōu |
| subsidy | 补贴 | bǔ tiē |
Why higher prices bring more goods
- When the price of a crop doubles, farmers rush to plant more of it. Higher prices reward sellers.
- That is the law of supply 供给定律, the mirror image of demand.
The law of supply states that, other things equal, as price rises:
Higher price, more supplied — the curve slopes up.
The law of supply 供给
- Supply = the quantity sellers are willing and able to produce at each price.
- Law of supply: as price rises, quantity supplied 供给量 rises — other things equal.
The supply curve slopes up — higher price, more produced.
Demand & supply
Supply slopes up — dearer means more made.
The supply curve slopes ______ because higher prices reward sellers.
Higher price → more supplied → upward slope.
Movement along the curve
- A change in the good's own price moves you along the supply curve.
- A price rise → an extension of supply; a price fall → a contraction.
A new tax on producing a good will:
A tax raises costs, so less is supplied at each price — a left shift.
A government subsidy to producers shifts the supply curve to the right.
A subsidy lowers costs, so more is supplied at each price.
Which shift the supply curve? (Select all that apply.)
Costs, technology and weather shift supply; own price moves you along it.
Shifts in supply
- Non-price factors shift the whole curve: costs of production, technology 技术, taxes 税收 and subsidies, weather, number of firms.
- Lower costs or a subsidy 补贴 → right shift (more supplied); higher costs or a tax → left shift.
A tax shifts supply left; a subsidy shifts it right. A per-unit tax raises sellers' costs, so they supply less at each price. A subsidy does the opposite.
You've got it
- supply = willing and able to produce at each price
- law of supply: price up → quantity supplied up (curve slopes up)
- costs, technology, taxes/subsidies and weather shift the curve