The Aggregate Supply (AS) Curve represents the total quantity of goods and services that firms in an economy are willing and able to produce at each price level within a given range of prices. Illustrated on a graph, the curve typically slopes upward, indicating that higher price levels generally encourage firms to increase production.
Understand the critical differences between a change in supply, which relates to factors affecting production, and a change in quantity supplied, which is a response to changes in market price.
A market condition characterized by significant shifts in demand or supply, resulting in market prices that have not adjusted sufficiently to clear the market. Disequilibrium features excess demand or supply and arises from changing factors affecting demand and supply.
The amount of a good or service that will be brought to market at a given price. The schedule of quantities supplied at each market price defines the Aggregate Supply Curve.
The Supply Price corresponds to the specific price level at which producers are willing to supply a particular quantity of goods or services, as indicated by a supply schedule or supply curve.
