Glossary
Supply Schedule
Imagine this supply schedule reflects the quantity of candy bars supplied by Chuck's Chocolates in a given week:
| Price per bar | Quantity of candy bars supplied |
| $2.00 | 500 |
| $1.60 | 400 |
| $1.20 | 300 |
| $0.80 | 200 |
| $0.40 | 100 |
A supply schedule shows how much of a good or service producers will supply at different prices.
Simply stated, the law of supply says that as the price of a good or service rises, the quantity supplied of that good or service also rises.
| Price | Quantity supplied |
 |
 |
Likewise, as the price of a good or service falls, the quantity supplied of that good or service falls.
| Price | Quantity supplied |
 |
 |
Notice that only two variables are included: price and quantity.
That's all the law of supply includes; it states how a change in the price of a good or service will affect the quantity supplied of that good or service.