The Supply Curve

alright now that we've wrapped up our discussion on demand, let's move on to supply. So I hope you guys see a lot of similarities here between what we're doing in demand and what we're gonna be doing here with supply. So supply relates to the behavior of the sellers. Are the suppliers in our market here. Um So the suppliers, I'm gonna write them both in here, suppliers, sellers, we're gonna use those terms interchangeably. You might even hear producers as well. Um So just like we had quantity demanded, we are gonna have the quantity supplied being the amount of a good that the sellers are willing to produce. Right? So we're gonna use the Q. S. Just like we had the Q. D. We've got Q. S. Here. Um So at any given price there's gonna be a quantity that will be supplied and the supply schedule is going to list these pairs um at different prices, how much quantity will be supplied. So just like we had the law of demand. Now we have the law of supply when the price of a good rises, the quantity supplied of that good rises. So remember with demand, the price went up, the quantity demanded went down. Now they're gonna be moving in the same direction. This is going to be a directly proportional relationship, right quantity supplied is gonna rise with price. So let me write that in here, price is gonna go up, that means the quantity supplied is gonna go up vice versa. The price goes down, quantity supplied will go down right? And this kind of makes sense right? If there's a higher price, more people are going to be willing to sell that product like hey the price of cereal went up. Maybe we should get into the cereal business right? I don't know. So the idea here is that they're going to move together price and quantity supplied will move in the same direction. So let's finish up our discussion here with the supply curve. Just like we had a demand curve. We are going to have a supply curve as well. So the supply curve is gonna be the graph is a graph showing the relationship between the price of a good and its quantity supplied. And remember just like the supply, the demand curve was what we call demand here, this is supply, right? So we're gonna make that distinction between supply and quantity supplied. And we're gonna just use an S. For supply, just like we use the big D. For demand will use the big S. For supply. So here right behind me, I've got a supply schedule for wheat and we've got different prices and different quantities that will be supplied at those prices. So notice when there's a high price of $9, you're gonna see a high quantity of 60,000. And as the price decreases you're gonna see decreases in the quantity supplied as well. So I've already put these points on our graph here. And just to reiterate right, we're gonna have the price on the Y axis quantity on the X axis, right, alphabetical order is the easy way to remember that. So I'm gonna go ahead and connect these dots to make our supply curve. Man, I'm just missing right now. Okay, so here we go. One more. One more. That's the one. Alright, so that will be our supply curve right there. Cool. And notice that the the supply curve uh here I am again. High. Alright. No notice that the supply curve slopes upward. And remember my little demonic before the double Ds demand downward and supply? Well that's just the other one. If you remember demand is downward. Supply is upward. Cool. Alright, let's go ahead and move on to the next video.

So now let's see the relationship between the individual suppliers supply curve and the market supply curve. So just like with demand, we've got individual supply curves for every single supplier. Um And when we want to find out the market supply, what we're gonna do is some all the individual supply curves. So we've got a pretty simple market here, we've got two suppliers, papa yams and domino peacemaking, Supreme Pizzas. So at different um levels of price, we are going to see different levels of quantity supplied from each supplier. And if we wanted to find out what the market supply is going to be, all we have to do is some all the suppliers individual supply curves, right in this case we only have two. So it should be pretty easy, let's start with a price of $2. So papa yams is gonna supply to see cream pizzas at that price and domino piece is not gonna get involved in the market. So we're gonna have a market supply of two at a price of $2. And how about at a price of $4 We're gonna see market supply coming up to six. Let's keep going here at a price of $6 papa. Makes eight pizzas, domino's makes two, and we're gonna get 10 pizzas. And notice we're seeing the supply is increasing as the price increases and that goes hand in hand with our law of supply, right? So 11 plus three. We've got 14 at a price of eight and at a price of 10, the market will supply 18 pizzas, right? So let's go ahead and let's grab the individual supply curves and the market supply curve. So let's start here with papa yams which is gonna be this second column here um and we're gonna take the prices and the quantity supplied for papa yams. So just like before right we've got our price access, there are quantity access down here and let's go ahead and graph these points. So at a price of $2 he papa john's will supply two pizzas right here at a price of $4. They will supply five pizzas in the middle of four and six at a price of six. They will supply eight pizzas price of 8. 11 pizzas and at a price of 10. 14 pizzas. Alright, I just realized I have this cool little tool over here. It should hopefully make my line making a little better look at that. Too bad. You guys can't do the same thing. Right well there is my supply curve. Um you know what I want to make it red. So in the end I'm just gonna drop myself, Oh well let's see what I get here close enough there is papa yams supply curve. Right, I'm gonna write that in here, papa yams supply. That's going to be this red line right here and that shows us that all the different prices. How many pizzas papa yams is willing to supply to the market, let's do the same thing with domino hopes. So at a price of $2 they want, let's label our axis, right P. And Q. At a price of $2, they are not going to supply any. So we are actually going to see a price of two and a quantity of zero right there. Let me get out of the way. Okay and at a price of four, they are going to supply one at a price of six will supply to price of eight will supply three. And at a price of 10 dominoes will supply four pizzas. So there we go. Let's go ahead and connect our dots here and get whoops look at me. All right, let's get this line very steep line. There is our supply curve for domino's cool. So that whole line is the supply curve and let's go ahead and make our market demand. So just like excuse me, our market supply. So right here we're gonna add the papa yam supply to the domino supply and that's gonna give us this column here on the right, right, those were our total market supplies um at the different prices. So let's go ahead and scroll down to our market supply graph. And let's go ahead and get those in there. All right. So we had at a price of two we're gonna supply to and there's space for me here. So I'm gonna come in. Alright, so let's go ahead and graph that. So the market supply at a price of two, price being our Y axis here, quantity being on our X axis. So at a price of two we are going to supply to write a price of four. We're going to supply six a price of six. We will supply 10 or the whole market not we Right at a price of eight, we're gonna supply 14. And at a price of 10, the market is going to supply 18 Supreme Pizzas. So let's go ahead. Make our supply curve here and that is our market supply. So notice what we did was some all the individual supply curves and we came up with our market supply. So now we will know how much is gonna be available at different prices in the whole market. Cool. So when you're asked to find the market supply, you just have to sum the individual supply curves. All right, let's move on.