# data[].attributes.body
Here on this wall I will be discussing the law of supply. going through the definitions, what happens when there is change. I have used websites, videos and pictures to further explain my discussion.

# data[].attributes.body
This first website I have published here is just explaining the law of supply, which states that the law of supply is the quantity of goods or services that suppliers offer will increase, and vice versa. So as the price of a product goes up, suppliers will try to gain as much profit as possible by increasing how much quantity they have.
- they have key takeaways which can give further explanations such as:"

Because businesses seek to increase revenue, when they expect to receive a higher price, they will produce more."

videos and pictures to help understand the key components of law of supply

- The reason I chose this website is because it does a good job of explaining the law of supply by defining it efficiently with examples, it's also organized and easy to understand on this page.

# data[].attributes.attachment_link.readable_text
What Is the Law of Supply?

The law of supply is a microeconomic law. It states that, all other factors being equal, as the price of a good or service increases, the quantity of that good or service that suppliers offer will increase, and vice versa.

In plain terms, this law means that as the price of an item goes up, suppliers will attempt to maximize their profits by increasing the number of that item that they sell.

Key Takeaways

Understanding the Law of Supply

The chart below depicts the law of supply using a supply curve, which is upward sloping. A, B, and C are points on the supply curve. Each point on the curve reflects a direct correlation between quantity supplied (Q) and price (P). So, at point A, the quantity supplied will be Q1 and the price will be P1, and so on.

The supply curve is upward sloping because, over time, suppliers can choose how much of their goods to produce and later bring to market. At any given point in time, however, the supply that sellers bring to market is fixed, and sellers simply face a decision to either sell or withhold their stock from a sale; consumer demand sets the price, and sellers can only charge what the market will bear.

If consumer demand rises over time, the price will rise, and suppliers can choose to devote new resources to production (or new suppliers can enter the market), which increases the quantity supplied. Demand ultimately sets the price in a competitive market; supplier response to the price they can expect to receive sets the quantity supplied.

The law of supply is one of the most fundamental concepts in economics. It works with the law of demand to explain how market economies allocate resources and determine the prices of goods and services.

Examples of the Law of Supply

The law of supply summarizes the effect price changes have on producer behavior. For example, a business will make more video game systems if the price of those systems increases. The opposite is true if the price of video game systems decreases. The company might supply 1 million systems if the price is $200 each, but if the price increases to $300, they might supply 1.5 million systems.

To further illustrate this concept, consider how gas prices work. When the price of gasoline rises, it encourages profit-seeking firms to take actions to expand supply, such as:

Increase exploration for oil reserves.

Drill for more oil.

Invest in more pipelines and tankers to bring the oil to plants where it can be refined into gasoline.

Build new oil refineries.

Purchase additional pipelines and trucks to ship the gasoline to gas stations.

Open more gas stations.

Keep existing gas stations open longer hours.

The law of supply is so intuitive that you may not even be aware of all the examples around you. For example, when college students learn that computer engineering jobs pay more than English professor jobs, the supply of students with majors in computer engineering increases. If consumers start paying more for cupcakes than for donuts, bakeries will increase their output of cupcakes and reduce their output of donuts to increase their profits.

The law of supply can even impact your own employment. When your employer pays time and a half for overtime, the number of hours you are willing to supply for work might increase.

What Are the Types of Law of Supply?

There are five types of supply-market supply, short-term supply, long-term supply, joint supply, and composite supply. Meanwhile, there are two types of supply curves-individual supply curves and market supply curves. Individual supply curves graph the individual supply schedule, while market supply curves represent the market supply schedule.

What Factors Affect Supply?

Supply is influenced by prices and consumer demand. The number of suppliers available, the level of competition, the state of technology, and the presence of government support or restriction will play important roles. For certain products like agricultural commodities, supply is also impacted by factors such as weather and crop yields.

What Is the Law of Demand?

The law of demand is a fundamental principle of economics that states that at a higher price consumers will demand a lower quantity of a good, and vice-versa.

What Is Supply and Demand?

The law of supply and demand outlines the interaction between a buyer and a seller of a resource. Supply and demand says that sellers will supply less of a product or resource as price decreases, while buyers will buy more, and vice versa, until an equilibrium price and quantity is reached. It incorporates both the law of supply and the law of demand.

The Bottom Line

The law of supply states that a higher price for a good or service will lead producers to supply more of that good or service to the market. This is because businesses want to increase their profits. When they can get a higher price for something, they will produce more of it than they will of other, lower-priced goods and services.

On the other hand, if prices fall, suppliers won't produce as much. The law of supply is one part of the law of supply and demand.

# data[].attributes.attachment_link.title
The Law of Supply Explained, With the Curve, Types, and Examples

# data[].attributes.attachment_link.description
The law of supply in economics states that as the price of a good or service increases, the quantity of goods or services increases and vice versa. Learn more.

# data[].attributes.body
In the law of supply there is changes and shifts, in this article i have submitted here goes through the occurrence of them explaining why and how they happen. so a change in supply happens when there is a shift either left or right in the entire quantity to price relationship. The example shown here is about how a method to extract oil(hydraulic fracturing)  has resulted in a positive supply in the oil market.  the production rose to 1 million barrels per day. Because of the supply increase the price dropped as low as $27.
- I chose this website because it effectively shows the shifts in law of supply and also makes sure to distinguish the difference between change in supply and quantity supplied.

# data[].attributes.attachment_link.readable_text
What is a Change in Supply?

Change in supply refers to a shift, either to the left or right, in the entire price-quantity relationship that defines a supply curve.

Understanding Change in Supply

A change in supply is an economic term that describes when the suppliers of a given good or service alters production or output. A change in supply can occur as a result of new technologies, such as more efficient or less expensive production processes, or a change in the number of competitors in the market.

A change in supply leads to a shift in the supply curve, which causes an imbalance in the market that is corrected by changing prices and demand. An increase in the change in supply shifts the supply curve to the right, while a decrease in the change in supply shifts the supply curve left. Essentially, there is an increase or decrease in the quantity supplied that is paired with a higher or lower supply price.

A key distinction is that a change in supply is not to be confused with a change in the quantity supplied. The former causes a shift in the entire supply curve, while the latter results in movement along the existing supply curve.

The general consensus amongst economists is that these are the primary factors that cause a change in supply, which necessitates the shifting of the supply curve:

Number of sellers

Expectations of sellers

Price of raw materials

Technology

Other prices

For example, if a new technology reduces the cost of gaming console production for manufacturers, according to the law of supply, the output of consoles will increase. With more output in the market, the price of consoles is likely to fall, creating greater demand in the marketplace and higher overall sales of consoles. The technological advancement has caused a change in supply.

Supply and Demand Curves

The effects of changing supply and demand are found by plotting the two variables on a graph. The horizontal X-axis represents quantity and the vertical Y-axis represents price. The supply and demand curves intersect to form an "X" in the middle of the graph; the supply curve points upward and to the right, while the demand curve points downward and to the right. Where the two curves intersect is the price and quantity, based on current levels of supply and demand.

A positive change in supply when demand is constant shifts the supply curve to the right, which results in an intersection that yields lower prices and higher quantity. A negative change in supply shifts the curve to the left, causing prices to rise and the quantity to decrease.

Change in Supply Example

During the early 2010s, the development of hydraulic fracturing ("fracking") as a method to extract oil from shale rock formations in North America caused a positive change in supply in the oil market. Non-OPEC oil production rose by over one million barrels per day as most of the oil came from fracking in North America.

Because of the increase in the supply of oil, the per-barrel price of oil, which had reached an all-time high of $147 in 2008, plunged as low as $27 in Feb. 2016. Economists predicted that lower prices would create greater demand for oil, although this demand was tempered by deteriorating economic conditions in many parts of the world.

# data[].attributes.attachment_link.description
Change in supply refers to a shift, either to the left or right, in the entire price-quantity relationship that defines a supply curve. A change in supply is an economic term that describes when the suppliers of a given good or service alters production or output.

# data[].attributes.body
In this video they give a brief and in depth explanation of law of supply and what it involves. they explain that law of supply is goods and services that businesses are willing to produce and deliver to a particular market.

# data[].attributes.body
In this video they do a good job on illustrating how the change in supply can be emerged. They give an example how the supply increases and how it moves along the supply curve.

# data[].attributes.attachment_link.title
Change in Quantity Supplied vs Change in Supply

# data[].attributes.body
In the third video what is being explained is the factors that can shift the supply curve either to the left or the right. and how there is a difference between a shift of the supply curve and a movement along the supply curve.

# data[].attributes.body
this picture is just defining the law of supply and also showing a picture of the relation between the price and the supply. as price increases quantity supplied increases and vice versa.

# data[].attributes.body
This second picture I have here is just explaining the supply, the law of supply and the quantity supplied. it's a good insight to the law of supply because you can get confused on distinguishing between law of supply and quantity supply.

# data[].attributes.body
For my third website I have submitted a page about what causes the change in supply. there is some supply determinants that cause it.
- improvements of technology: can decrease the need for factors of supplying products.
- taxes and subsidies: taxes decrease and subsidies increase profits to suppliers
-Number of sellers: more sellers will result in increase of supplies.

This website has been submitted because it does a good job on explaining  the different determinants that result in the change of supply.

# data[].attributes.attachment_link.readable_text
Supply is a schedule showing the relationship between what producers are willing to produce at each price during a specific period. Because producers must pay expenses to produce a product and because they expect to earn a profit, producers will increase the supply in proportion to the price at which they can sell.

The law of supply states that the supply increases as the price increases, and falls when prices fall. Because demand decreases when prices increase and vice versa, there is an inverse relationship between demand for the product and its supply.

The amount that sellers are willing to supply at each price is displayed in a supply schedule, which is a table showing the relation between the supply price and the quantity supplied, and a graph of this relationship is called the supply curve. The supply curve is often displayed as a straight line, but the reality is that capital and labor costs money, so, in the long run, suppliers will not produce a product or supply a service if the price is insufficient to pay for the inputs and to provide a profit. In the short run, suppliers may take a loss to better cover sunk or fixed costs, but suppliers will leave the market if there are no expectations of future profit. Nonetheless, because the minimal prices required for producing a profit will differ according to the product or service and to the knowledge of suppliers, the supply curve is depicted as a straight line. (That the line is straight is also a simplification of an economic concept, as is the demand curve.)

Market Supply

Because of differences in the efficiency that each producer can produce a product and because of differences in the desirability of producing a product, each producer will have their own supply schedule - the amount that they are willing to supply at each price. The aggregate or market supply schedule equals the sum of all individual supply schedules. Likewise, the sum of the supply curve of each supplier is equal to the market supply. Below is an example of the supply schedule of cantaloupes at each price between $1 and $5 by the only 2 farmers at a farmer's market.

Supply Determinants

Aside from prices, other determinants of supply are resource prices, technology, taxes and subsidies, prices of other goods, price expectations, and the number of sellers in the market. Supply determinants other than price can cause shifts in the supply curve. Those that cause a decrease in the supply shifts the supply curve leftward, meaning that suppliers will supply less at every price point on the supply curve, while increases in supply caused by non-price supply determinants shift the supply curve rightward, where suppliers will supply more at every price.

Changes in price simply shifts the amount supplied along the supply curve. A higher price provides an incentive to increase the supply of a product. However, there may be diminishing returns in trying to increase the resources needed to produce a product in a short timeframe.

Increased prices usually increases profits, which is the main incentive for sellers to produce more. Therefore, the effect of the supply price depends also on resource (aka input) prices. If resource prices increase faster than supply prices, then producers will have less incentive to produce more. Likewise, when resource prices fall, then profits increase for the same price level, so sellers will produce more.

A similar analysis can be applied to taxes and subsidies, since taxes decrease and subsidies increase the profits of suppliers.

Improvements in technology can reduce the need for factors of production in supplying a product. For instance, robotics have greatly reduced the need for labor. More fuel-efficient aircraft allows airlines to sell seats for less, thereby increasing demand. Technology can also reduce distribution or marketing costs. For instance, the cost of distributing electronic books is virtually zero.

Prices of other goods will also affect the production of any one good. If a business can produce more than one type of product with its equipment and labor, then it tends to produce more higher-profit products and less of other products. For instance, a farmer can produce a large number of products on a farm. Hence, the farmer will allocate increased acreage for products yielding the highest profits. Since the farmer has only so many acres of land, devoting more land to grow one type of food will leave less land to grow other types. Such a substitution production will reduce the supply of the other items that the farmer can provide. And what is true for one farmer is probably true for all of them. Hence the market supply of more profitable crops will be greater until the increased supply reduces the market price enough to eliminate the excessive profit.

The number of sellers will have an effect on the market supply, since the market supply is simply the sum of the supply of each individual seller - more sellers entering the market increases supplies while departing sellers decreases supply.

Expected prices can also change the present supply, because if suppliers believe that prices will decline in the near future, they may try to sell all that they have presently. Likewise, if prices are expected to rise in the future, then suppliers may hold onto their supply until prices rise. After all, this is why people hold stock in companies, because they expect stock prices to rise. When they believe that the stock has reached the maximum price, then the expectation is that the prices thenceforth will decline, so they sell their stock to lock in their profit.

# data[].attributes.attachment_link.description
Supply is a schedule showing the relationship between what producers are willing to produce at each price during a specific period. Because producers must pay expenses to produce a product and because they expect to earn a profit, producers will increase the supply in proportion to the price at which they can sell.

# data[].attributes.body
what did you learn that surprised you the most?
What I learned that surprised me the most is the different determinants that can result in the shift of supply.

# data[].attributes.body
provide a real life example ?
an example can be if there is a bunch of unemployed people and not a lot of job opportunities, this will result in lower pay wages so they can all get accustomed to.

# data[].attributes.body
what I can explain to a family member is that, if a product price increases it entails that the suppliers are trying to capitalize on this product because they have an increase of the product on hand.