stations open longer hours. Economists call this positive relationship between price and quantity

supplied—that a higher price leads to a higher quantity supplied and a lower price leads to a lower quantity

supplied—the law of supply. The law of supply assumes that all other variables that affect supply (to be

explained in the next module) are held constant.

Still unsure about the different types of supply? See the following Clear It Up feature.

Access for free at openstax.org
3.1 • Demand, Supply, and Equilibrium in Markets for Goods and Services 51

CLEAR IT UP

Is supply the same as quantity supplied?
In economic terminology, supply is not the same as quantity supplied. When economists refer to supply, they mean

the relationship between a range of prices and the quantities supplied at those prices, a relationship that we can

illustrate with a supply curve or a supply schedule. When economists refer to quantity supplied, they mean only a
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