Supply Curve

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What is Supply Curve?

Supply Curve definition: In economics, supply curve is a graphical representation of supply schedule is called supply curve.

In a graph, the price of a product is represented on Y-axis and quantity supplied is represented on X-axis.

Read: Law of Supply


Types of Supply Curve

In, economics, Supply curve can be of two types, individual supply curve and market supply curve. These two types of supply curves are explained as follows:

Types of Supply Curve are:

  1. Individual supply curve
  2. Market Supply curve

Individual supply curve

Individual supply curve definition: It is the graphical representation of individual supply schedule.

The individual supply schedule of commodity A represented in Table when plotted on a graph will provide the individual supply curve, which is shown in Figure.

Individual Supply Curve
Individual Supply Curve

The slope moving upwards to the right in individual supply curve shows the direct relationship between supply and price, i.e. increase in supply along with the rise in prices.

Market Supply curve

Market Supply curve definition: It is the graphical representation of market supply schedule.

The market supply schedule of commodity A (supplied by Firm X and Firm Y) represented in Table, when plotted on the graph will provide the market supply curve, which is shown in Figure.

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Market Supply Curve
Market Supply Curve

Read: Movement and Shift along Supply Curve

Reference
  1. D N Dwivedi, Managerial Economics, 8th ed, Vikas Publishing House

  2. Petersen, Lewis & Jain, Managerial Economics, 4e, Pearson Education India

  3. Brigham, & Pappas, (1972). Managerial economics, 13ed. Hinsdale, Ill.: Dryden Press.

  4. Dean, J. (1951). Managerial economics (1st ed.). New York: Prentice-Hall.

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