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hey folks today well talk about the supply equation so in the demand equation now we know exactly why demand slopes downwards but now were going to see why supply slopes upwards and if you remember we also have a linear equation but now its from the perspective of the producer the supply curve we can have Q sub s is a function of D the x-intercept plus the inverse slope of P and here is what we call our supply equation so unlike demand notice how there is a positive sign in front of P which means price and quantity are directly related as a price of a good increases producers will supply produce more again you as a producer would want to sell at the highest price so you are willing to produce more where as the price of a good youre selling decreases its not worth your time to be in the business you are more likely to produce less and this is why we see a positive direct relationship between quantity in price now we could also use random numbers to illustrate what we have here we
