• If consumers determine what to produce through their demand at each price level it is of course the firms that will meet this demand through SUPPLY.  So now let's learn about the concept of SUPPLY.

• SUPPLY INDICATES THE VARIOUS QUANTITIES OF A PRODUCT THE PRODUCER/MARKET IS WILLING & ABLE TO PROVIDE AT DIFFERENT POSSIBLE PRICES DURING A PARTICULAR TIME PERIOD, CETERIS PARIBUS.

• THE LAW OF SUPPLY= a LAW stating that there is a POSITIVE RELATIONSHIP between price (P) and quantity (Q) of a good supplied: 

--"The HIGHER the PRICE, the HIGHER the QUANTITY SUPPLIED, CETERIS PARIBUS, and vice versa."--