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Law of Supply

Author: Kate Eskra

Source: Image of Supply Graph created by Kate Eskra

Video Transcript
Terms to Know
Law of Supply

If the price of a good decreases, the quantity supplied decreases.

Movement Along Supply Curve

Movement caused by a change in price, assuming all other variables are held constant.

Opportunity Cost

The sacrifice made by choosing one value or opportunity over another; the value of the forgone opportunity.

Shift in Supply

Changes other than the price of the good itself that affect production decisions for a particular good.