Class 31: The supply curve

Today, Mr Rizzo talks about the supply curve and what we can learn and observe from the supply curve. Similar to demand curve, it has the supply and the quantity supply that will be affected by either prices of the product or the other factors such as expectation, technology and prices of all other factors. It also has the elasticity of supply. For instance, if m=2, for every 1% of change of price of the goods, it will affect change of the quantity of supply by 2%.