Quantity Supplied
Definition
Quantity supplied refers to the specific amount of a good or service that producers are willing and able to sell at a particular price during a given time period.
Analogy
Imagine you have 10 cupcakes ready for sale. The number 10 represents the quantity supplied. If you increase it to 20 cupcakes, then your quantity supplied has doubled.
Related terms
Law of Supply: States that there is a direct relationship between price and quantity supplied; as price increases, quantity supplied also increases.
Producer Surplus: The difference between what producers receive from selling goods or services and their minimum acceptable price.
Elasticity of Supply: Measures how responsive suppliers are to changes in price by examining the percentage change in quantity supplied compared to percentage change in price.
"Quantity Supplied" appears in:
Subjects (1)
Study guides (1)
Practice Questions (4)
- Which of the following represents quantity supplied?
- If the supply curve shifts to the right, what happens to quantity supplied?
- What happens to quantity supplied when the price level decreases?
- If the supply curve shifts to the left, what happens to quantity supplied?
Resources
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