pcecon.com Class Notes Sellers AN IMPORTANT DISTINCTION: The
opposites of these will reduce supply (move the curve to the
left) choose the quantity we want to sell based on the price MU
is utility expected from price MC is the value of other uses of
the item (including selling to different buyers) If the sellers
MU (price) is greater than the marginal opportunity cost , then
the seller is willing to sell the item, otherwise it is not. At
minimum, the price must be a little above the MC for the seller
to be willing to sell quantity supplied is the amount sellers
are able and willing to sell at a particular price We observe
that, ceteris paribus, at a higher price, the quantity supplied
(made available) by suppliers is larger than it is at a lower
price. This rule or law concerning price and quantity supplied
is called the LAW OF SUPPLY Another way of stating the law of
supply is to say that "the relationship between the price of a
good and the quantity supplied of the good is a positive, direct
relationship, c