After you have worked through this section of the learning unit, you should be able to:
- draw a supply curve based on data in a supply schedule and use it to explain the law of supply
It is also possible to demonstrate the law of supply by using a graph. To do this, you have to use the information in the supply schedule. Study the following graph to see how the information in the table is plotted as points. When the points are joined, we have a supply curve.
Look carefully at the supply curve above. Can you see how the supply curve is labelled S? The supply curve shows how many pieces of fried chicken producers are planning to sell at each price. As you can see, the supply curve slopes upwards from left to right, showing a positive relationship between the price and quantity supplied.
Now watch the following video about drawing a supply curve:
Use the following supply schedule to draw a supply curve:
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