quantity demanded refers to a (specific) point on the curve.

Supply of Goods and Services

When economists talk about supply, they mean the amount of some good or service a producer is willing to

supply at each price. Price is what the producer receives for selling one unit of a good or service. A rise in price

almost always leads to an increase in the quantity supplied of that good or service, while a fall in price will

decrease the quantity supplied. When the price of gasoline rises, for example, it encourages profit-seeking

firms to take several actions: expand exploration for oil reserves; drill for more oil; invest in more pipelines

and oil tankers to bring the oil to plants for refining into gasoline; build new oil refineries; purchase additional

pipelines and trucks to ship the gasoline to gas stations; and open more gas stations or keep existing gas

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