Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 4 - Part II - The Market Forces of Supply and Demand - Questions for Review - Page 86: 5

Answer

Supply Schedule: A supply schedule is the tabular representation of the relationship between different price points and the quantity that the supplier is willing to supply at that price point. Supply Curve: A supply curve is another way to show the quantity of product the supplier is willing to supply at different prices - the relationship between the price and quantity. In the supply curve, we have the price points on the y-axis and quantity on the x-axis. This is similar to what we have observed in the demand curve with a difference in what we mean by 'quantity'. In demand curve, by quantity, we meant the quantity that the buyer is willing to buy at a certain point. Further, the demand is upward sloping in the demand curve. This is because at greater price points the supplier is willing to supply more quantity of a product.

Work Step by Step

The above explanation is made clear through the figure attached. The figure is taken from Principles of Economics, 7th Edition by Mankiw, N. Gregory.
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