Supply Curve And Supply Curve Shifts ~ In curve offer It is necessary to distinguish between two meanings, namely supply and quantity of goods offered. Supply means the entire supply curve. The number of goods offered means the number of goods offered at a certain price level.
Supply Curve Shifts in the Supply Curve
Supply Curve & Shifts in the Supply Curve

A. Supply Curve

curve offer can be defined as:

“That is a curve that shows the relationship between the price of a particular good and the quantity supplied of that good.”.

  • If supply increases due to factors other than price, supply shifts to the upper left.
  • If it decreases, the supply curve shifts to the upper left.
  • The formation of market prices is determined by market mechanisms

according to Haryati (2007), the supply curve is a curve that connects the combination points between the price and the number of goods produced or offered. The supply curve is a line that defines the quantity supplied of a good at a given price level. At a given price level, sellers are willing to offer less but sellers are unwilling to offer more. The seller is willing to accept a higher price for a certain amount, but the seller is not willing to offer that amount at a lower price. This concept is often referred to as the seller’s minimum willingness to accept the price (willingness to accept).

The characteristics of the demand curve, namely:

Supply Curve
  1. Depicted from top left to bottom right;
  2. A negative slope results from an inverse (negative) relationship between P and QdIf P goes up then Qd goes down If P goes down then Qd goes up Difference between table and curve- For; describe the demand curve must first know the table / list of the characteristics of the supply curve;
  3. Move up from left to right; and
  4. A positive relationship between price and quantity supplied in this case if the price. increases, the quantity supplied increases and when the price falls, the quantity supplied falls.

Based on the example of the supply data table above, below is the legal supply curve.

Supply Curve
Supply Curve

B. Shifts in the Supply Curve

Changes in quantity supplied may occur as a result of shifts in the supply curve.

A change in the price of a good, a factor other than the unchanged price (ceteris paribus) causes a movement along the curve or represents a change in the quantity supplied. This is because price changes will only affect the quantity supplied or will only change the combination points between price and quantity supplied. While changes in variables other than price will result in a shift in the supply curve, meaning that changes in these factors will cause an increase or decrease in the number of goods offered at the same price level.

increase in production prices (price of inputs), while other factors (ceteris paribus), the smaller the profit that will be obtained from the production of a commodity. Rational producers will reduce their production if the profits are getting smaller. Therefore, an increase in the price of a factor of production shifts the supply curve to the right. A shift in the curve indicates a shift in the overall supply curve. This implies a change in the quantity supplied at each price level of the product. A movement along the curve indicates a change in the quantity supplied in response to a change in the price of the product.

Shifts in the Supply Curve (Supplay)
Shifts in the Supply Curve (Supplay)

The shape of the supply curve can shift to the right if the quantity of the good produced is abundant because of technological advances or because of the desired profit. On the other hand, the supply curve shifts to the left if the quantity produced decreases, as shown in the figure below.

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