Share This Article:

Economic Definition of factor supply curve. Defined.

Offline Version: PDF

Term factor supply curve Definition: A graphical representation of the relation between the price to a factor of production and quantity of the factor supplied, holding all ceteris paribus factor supply determinants constant. The factor supply curve is one half of the factor market. The other half is the factor demand curve. The factor supply curve indicates the quantity of a factor that would be supplied at alternative factor prices. While all factors of production, or scarce resources, including labor, capital, land, and entrepreneurship, have factor supply curves, labor is the factor most often analyzed. Like other supply curves, the factor supply curve is generally positively sloped. Higher factor prices are associated with larger quantities supplied and lower factor prices go with smaller quantities supplied.

 

« factor supply | factor supply determinants »

Permalink: http://glossary.econguru.com/economic-term/factor+supply+curve

Alphabetical Reference to Over 2,000 Economic Terms