Supply curve

On the producers’ side, the quantity put on the market grows with the price: it is worth producing more when more is sold.

Definition — Supply curve

The supply curve $S(p)$ expresses the quantity that producers are willing to put on the market as a function of the price. It is an increasing function: the higher the price, the more worthwhile it is to produce. Linear model: $S(p) = c\,p - d, \qquad c,d>0,\ p\ge d/c.$ $d/c$ is the survival price below which nothing is produced at all.

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Topics: Functions and properties
Concepts: Supply curve
Functions: Line
Methods: Linear supply curve
Skills: Modelling