Key terms
- Supply
- Supply is the amount of a good or service a producer is willing to supply at each price.
- Quantity supplied
- Quantity supplied is the amount offered at one particular price, a single point on the supply curve.
The law of supply says the two move the same way
Price and quantity supplied move together: a higher price leads to a higher quantity supplied, and a lower price leads to a lower quantity supplied. That runs opposite to the demand side, which is why the two curves cross rather than running parallel.