Price and supply
the law of supply means when the price goes up, producers supply more, and when the price goes down, they supply less. That’s why the supply curve slopes upward from left to right — showing a positive link between price and quantity supplied.
movement along a supply curve happens only when price changes.
If price rises, producers supply more — this is called an extension in supply.
If price falls, producers supply less — this is a contraction in supply.
Individual supply and market supply
individual supply is how much one producer can supply at different prices.
Market supply is the total supply from all producers combined at each price level.
For example, if Airbus supplies 300 planes and Boeing 320 at the same price, the market supply = 620 planes.
Conditions of supply
conditions of supply are non-price factors that affect how much producers can supply.
If these factors improve (like better technology), the supply curve shifts right — that’s an increase in supply.
If they worsen (like a disaster or higher costs), the curve shifts left — that’s a decrease in supply.