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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.