Ceteris Paribus, as a price rises, the quantity supplied rises; as price falls, the quantity supplied falls:


                 |          /
               P2|--------/
                 |      / |
             P P1|----/   |
                 |  / |   |
                 |/   |   |
                 +--------------
                     Q1   Q2
                        Q

Above: a supply curve, where P = price and Q = quantity. As the price of a good increases (P1 to P2), the quantity supplied increases (Q1 to Q2); while as the price decreases (P2 to P1) the quantity supplied decreases (Q2 to Q1).

Determinants of Supply:

The supply curve can shift to the left or the right by a change in anything but price: taste, number of buyers, income, prices of related goods, and expectations.

                      S3    S1    S2
                 |    /     /     /
                 |  /     /     /
                 |/     /     /
             P   |    /     /
                 |  /     /
                 |/     /
                 +--------------
                    
                        Q

Above: D1 is the original supply curve. S2 is an increase in demand, while S3 is a decrease in demand.

There are three types of related goods:

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