SUPPLY CURVE

Supply Curve

The supply curve is a curve that shows the relationship between the price of goods by the number of goods on offer, which is when the number of things that could offer goods at a price level and a certain period of time.

In the following table is one of the supply curve on the sales list "Tough Shrimp Store". The supply curve made under the table.

 Tough Shrimp Store Sales

Sales Curve in Tough Shrimp Store  

Table explanation. Shrimp sales curve shows that the line moves from the lower left to upper right. This shows that the direction of the line on a curve (slope) is positive, which means the amount of goods offered to consumers directly proportional to the price of goods. It can be concluded that "The higher the price, the more the amount of goods offered".

Shifting Supply Curve

On the supply curve can be shifted and this is because the factors that affect the supply curve itself. Shift of the supply curve is characterized by the movement of the curve to the right or vice versa (left).

If the supply curve shifts to the right direction means that the number of bids on the item increases. But on the contrary, if the direction of the shift leads to the left, the number of deals declined. To illustrate the supply curve shifted to the right (increase) or to the left (decrease) then we can take the example of sales in Tough Shrimp Store.

  

List Price Shrimp after price hike

  

Shrimp Prices	Before Up	After
(USD/Kg)	(Kg)	(Kg)
4500	35	30
5000	40	35
5500	45	40
6000	50	45
9000	55	50
11000	60	55

Specification:

S1 = Total supply after price hike

S = Number of offers before the price increase

explanation:

In the chart above shows the S supply curve shifts to the left to S1. This occurred in the supply curve shrimp as a result of the increasing price of seed and feed.

So it can be concluded that a change of one or more factors that were once considered permanent / temporary, will change the number of deals as well shift the supply curve.