Supply Curve

The supply curve isn’t really a curve—just more of a line (curved or not) on a graph. In a classical supply and demand graph, you have your supply curve and your demand curve. The supply curve reflects business creating goods and services, and the demand curve reflects consumers. Businesses want to sell their goods for as high of a price as they can get, and consumers want to buy goods for a price as low as they can get. The price things end up being? Close to the middle, where these two lines cross on a price y-axis and quantity (of goods) x-axis graph.

The supply curve reflects the law of supply. The law of supply states that as the price of something goes up, the quantity also goes up. Makes sense, right? If you’re a business selling something like hotcakes (gotta love hotcakes), you’ll probably make more to sell even more, for more money in your pocket. That’s why the supply curve goes from the bottom left of the graph to the upper right. For each point on the supply curve, you can move up it and see that as price increases, supply increases. Time to go make more hotcakes.