Final answer:
The law of supply states that a higher price leads to a greater quantity supplied, while a lower price leads to a lower quantity supplied, all other variables being held constant. Quantity supplied is represented by individual points on a supply graph, while the entire supply curve represents supply as a whole. Factors that affect supply include production costs, market demand, and available resources.
Step-by-step explanation:
The law of supply states that a higher price leads to a greater quantity supplied, while a lower price leads to a lower quantity supplied, all other variables being held constant.
Quantity supplied is represented by individual points on a supply graph, while the entire supply curve represents supply as a whole. A shift of the supply curve to the right indicates an increase in supply, while a shift to the left indicates a decrease in supply.
Factors that affect supply include production costs, market demand, and available resources. For example, if a firm's production costs decrease while prices remain unchanged, the firm is more motivated to supply a larger quantity at any given price, leading to a rightward shift in the supply curve.