Law of supply

The law of supply states that when the price of a good is rising, producers or sellers are more willing to create or sell that item therefore increasing intended quantity supplied.  This is driven by our never-ending need to gain more wealth taking advantage of whatever is profitable at present. When the price of a good is rising, it motivates sellers to sell more of that item now so that in the very near future when it increases again they locked in the price it cost them to acquire it when sold at a now much higher price. If it continues, then they got the trend and are willing to supply more.

Supply Schedule

A table representing the quantity intended to sell or produce a good at a certain price level. These are assumptions about the seller's sentiment towards the size of intended production of the good.



Supply Curve

This is a graphic representation of seller's sentiment towards a change in price. It plots the degree of relationship between the price of the good and the number of items supplied at that price level. This is like drawing how the supply schedule looks like when converted to an image. changes in the supply curve are caused by events such as scarcity of the available supply and the demand is high which pushes the price higher triggering a need to produce more. A new technology which sells quickly makes sellers supply more of that product to maximize revenue that shifts the supply curve.

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