EconomicsExam code: 0455

Supply

Allocation of Resources

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Upward-sloping supply curve labelled SUPPLY on price (£) and quantity-supplied axes; a rise in price from P1 to P2 raises quantity supplied from Q1 to Q2, a movement up along the curve
Source: Calculation & Determinants of PES by Save My Exams

A plots the quantity of a good producers will offer (horizontal axis) against the price (vertical axis). It slopes upward from lower-left to upper-right, the opposite direction to the demand curve. Exam diagrams use straight lines for ease.

Standard layout on every supply-curve diagram:

  • Vertical axis: price (in £ or $ per unit).
  • Horizontal axis: quantity supplied per period (units per week, per month).
  • Curve label: S for the supply curve. Shifts to S₁ (left, less supplied) or S₂ (right, more supplied) when conditions of supply change.

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