The Supply Schedule

Let us now turn from demand to supply. The supply side of a market typically involves the terms on which businesses produce and sell their products. The supply of tomatoes tells us the quantity of tomatoes that will be sold at each tomato price. More precisely, the supply schedule relates the quantity supplied of a good to its market price, other things constant. In considering supply, the other things that are held constant include costs of production, prices of related goods, and government policies.

The supply schedule (or supply curve) for a commodity shows the relationship between its market price and the amount of that commodity that producers are willing to produce and sell other things held constant.

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