Market Supply Curve

View FREE Lessons!

Definition of a Market Supply Curve:

A market supply curve is the supply curve of all producers, or the sum of all individual producer supply curves.

Detailed Explanation:

The market supply curve is a graph detailing how much of a good or service all the producers would furnish at different prices. It slopes upward to the right because producers are enticed to produce more at higher prices because their profits would increase. The market supply curve is steeper in the short-run than the long-run. A steep curve indicates there is little flexibility in the production process. Price changes have little impact on the quantity produced. For example, if the price of corn increases, farmers are unable to immediately grow more corn. However, next year they could substitute corn for another crop.  A "supply curve" is normally assumed to be the market supply curve unless an individual producer is specified.

Dig Deeper With These Free Lessons:

Supply - The Producer's Perspective
Demand - The Consumer's Perspective
Supply and Demand - Consumers and Producers Reach Agreement
Factors of Production - The Required Inputs of Every Business

   

Search the Glossary


Market Overview:

Market quotes are powered by TradingView.com

Single Quote:

© 2018 Higher Rock Education and Learning, Inc. All rights reserved. No portion of this site may be copied or distributed by any means, including electronic distribution without the express written consent of Higher Rock Education and Learning, Inc.