How is slope of supply curve measured?

Dear Student,
The Slope of the Supply Curve. Since slope is defined as the change in the variable on the y-axis divided by the change in the variable on the x-axis, the slope of the supply curve equals the change in price divided by the change in quantity.
The law of supply states that all else being equal, the quantity supplied of an item increases as the price increases and vice versa. The “all else being equal” part is important here, since it means that input prices, technology, expectations, etc. are all held constant and only the price is changing.
The vast majority of goods and services obey the law of supply, if for no other reason than it's more attractive to produce and sell an item when it can be sold at a higher price. Graphically, this means that the supply curve usually has a positive slope, i.e. slopes up and to the right.


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