supply curve

Definition

Graph curve that normally slopes upward to the right of the chart (except in case of regressive supply curve), showing quantity of a product (good or service) supplied at different price levels. Customarily, the price is plotted on vertical ('Y') axis and quantity on the horizontal ('X') axis, and it is assumed that (in the short run) the price of the inputs and productivity of the production process remains unchanged. Supply curves of the individual products are aggregated to give a market supply curve and, when drawn together with the demand curves, show the equilibrium price at the intersection of the two curves.