Put simply, the supply curve is a graph that illustrates how much of a particular item or service suppliers are willing to and able to provide at different prices. It is an important tool used in both economics and finance to explain the relationship between price, quantity supplied and market equilibrium. To be more specific, the supply curve usually slopes upwards, meaning that as prices increase, so too does the quantity supplied by producers. More expensive items generally have higher supply curves than cheaper ones – suppliers are more likely to produce when there is a larger profit to be made from doing so. However, there are other factors such as cost of production that can affect the shape and steepness of the curve. Understanding the concept of the supply curve is key for businesses looking to maximize their profits within a competitive marketplace.