supply curve
Definition
The supply curve is a graphical representation that shows the relationship between the price of a good and the quantity of that good that suppliers are willing to produce and sell. It typically slopes upward, indicating that higher prices incentivize producers to supply more of the product.
Analogy
Consider the supply curve as a hiking trail up a mountain. As you climb higher (representing an increase in price), you're motivated to push further (representing an increase in quantity supplied) because the view (profit potential) improves, making the effort (production) more worthwhile.
Related terms
Law of Supply: It states that, all else being equal, an increase in price results in an increase in the quantity supplied.
Demand Curve: This is a graph showing how much of a good consumers are willing to buy at different prices, usually sloping downward from left to right.
Market Equilibrium: A situation where the quantity of a good or service supplied equals the quantity demanded at a specific price point
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