oboloo Glossary

Supply Curve In Economics

oboloo Glossary

Supply Curve In Economics

The supply curve in economics is an economics concept that maps how much of a given product or service will be offered by suppliers at a certain price. Essentially, it’s a graphical representation of the relationship between price and the quantity supplied by producers. Producers are incentivized to increase production as the price rises; this is why the curve slopes upwards. This economic concept can help explain pricing decisions in markets, consumer demand, and market efficiency. When predicting future prices, the supply curve’s shape can be used to estimate what price changes are likely to bring about—enabling businesses to make better-informed decisions about their production strategies.