LAW OF

SUPPLY

Presented By:
Banderada, Ma. Nicole

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 As the price of a GOODS
increases, quantity supplied
increases, all other things
constant or equal.

This can be represented by a

function, a schedule or by a
curve.

LAW OF
Supply
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 SUPPLY
Function
Table 2.2
Given the supply function as
Supply Schedule
follows:
Price per Kilo of Rice Quantity Supplied of Rice
Qs = c + dP (in peso) (in kilos)
Where: 20 20,000
Qs = quantity supplied 25 30,000
P = price
30 40,000
c = intercept
d = quantity supply divide price
35 50,000
40 60,000
Supply Schedule: The supply
function can be expressed in tabular
form and through substitution in the
supply function; the table/schedule is
shown as:
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SUPPLY Fig. 2.6
Curve Supply Curve

The line plotted on the graph is the

supply curve of the given supply
schedule.

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 CHANGE IN QUANTITY SUPPLIED
Fig. 2.7
Change in Quantity Supplied
A CHANGE in
quantity supplied
occurs when there is a
CHANGE in the price
of the goods.

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 Change in Supply
Fig. 2.8
Change in Supply
Occurs whenever
any of the non-price
determinants of
supply changes.

*Increase in Supply is represented

by a shift in the supply curve to the
RIGHT, a shift from S to S1.
*Decrease in Supply is represented
by a shift of the supply curve to the
LEFT, a shift from S1 to S.

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DETERMINANTS
Supply

1.Cost of production
Factors affecting the supply.
2.Technology
3.Subsidy
4.Price of competing products
5.Number of sellers
6.Price expectation

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 THANK
YOU!

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