Economics · Unit 2: Microeconomics

EC2.2 — Supply

Economics · SL / HL · syllabus-mapped notes

1. EC2.2.1

   The law of supply, relationship between price and quantity supplied

   Explain why quantity supplied rises with price, and at HL the assumptions behind it, diminishing marginal returns and rising marginal costs.

2. EC2.2.2

   Supply curve

   Draw a supply curve from a supply schedule, including the special case where it is vertical.

3. EC2.2.3

   Relationship between an individual producer’s supply and market supply

   Explain how the supplies of individual firms add up to market supply.

4. EC2.2.4

   Non-price determinants of supply

   Explain how factor costs, technology, related goods, price expectations, taxes, subsidies and the number of firms each shift the supply curve.

5. EC2.2.5

   Movements along and shifts of the supply curve

   Distinguish a change in quantity supplied, caused by price, from a change in supply, caused by anything else.