so we have talked about demand which comes from buyers valuation now let's flip the coin and talk about Supply Supply comes from sellers Behavior what sellers are willing and able to offer just like with the demand it's essential to distinguish between Supply and Quant quantity supplied they are not the same thing quent is supplied is a specific amount of good that seller are willing and able to sell at a given price there is positive relationship between price and quantity supp supplied that is the law of supply as prices go up sellers are generally more willing to sell more that relationship the whole picture is what we call Supply let's imagine I asked Starbucks manager hey if a copy was free how many cups would you sell they probably say zero right what price is dollar maybe they would do sell three cups $2 let's say manager says then six cups and so on see how number change each of those number in this column is quantity supplied at a specific price so the whole table of price and quantity supplied that is Supply now we can grab this too price on the vertical axis Quant is applied on the horizontal axis and plot the point and we connect the that and we've got this starbox individual supply curve this slop reflecting the positive relationship now what there is another Cop Shop Karu we ask them again manager of karibu same question to get market supply what are we supposed to do yes here is now the major answer for GBU that is GBU individual supply curve now we can add Starbuck and GBU supply curve so we add up this quantity Supply there and we obtain this number that's Market Quantum suppli like in demand so market supply is horizontal summation of individual Supply Supply now what can sift supply curve remember price does not sip to supply price change cause movement along supply curve changing quantity supplied just like we discussed in demand what does sift Supply then let's look at Key factors first in price this is not the price of the product except but the price of thing used to make the product think wages for worker cost of coffee bean Etc so inut if input prices go down that's good news for seller so they are willing to sell more so Supply increase if price goes up then Supply decrease so it sift to in the other direction second technology so better technology usually lowers the cost of production which is also good news for seller it is like having lower imp prices so technological advancement generally increase Supply third number of seller more seller more Supply few seller less Supply pry this stade forward fourth expectation yeah this can be a little tricky if gu station owner expect price of gas to Skyrocket near future they might hold back on selling today to sell at the higher price future so expectation about future price can affect current Supply okay let's try some example a retailer C price of their software what happened to supply of software why Supply increase or decrease no nothing price doesn't change Supply price change cause movement along the curve not SI to Cur set remember as a price changing just the quantity Supply the change in this case content is supplied decrease next question technological Advance allows s to be produced at a lower cost what happen Supply where Supply increase right yeah that's like just decreasing input cost it's good news for seller now here is another one professional tax return return preparer raise the price of their service what happened to the supply of tax preparation software well this is common mistake it's tempting to say supply of software decrease because they are substitute but remember the price of substitute effector demand not Supply right so the supply of software doesn't change obviously demand change but not the supply so keep in mind that only those four factors in prices technology number of seller and expectation can sip to supply curve