Principles of Microeconomics / Unit 2 MIC 0105 short lesson, about 20 seconds
The Law of Supply
Captions available
The idea
The law of supply says that, other things unchanged, a higher price raises the quantity supplied and a lower price reduces it. Supply curves slope up.
In practice
A higher oil price makes marginal wells worth pumping.
Where people slip
The law has more exceptions than demand's: a fixed quantity of land cannot rise with price, and unit three meets a curve that bends back.
Your place on the trail
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