Supply and Demand The Supply Price (s per unit) S Curve Graphically 2 The supply curve slopes upward demonstrating that at higher prices firms will increase output Quantity Chapter 2: The Basics of Supply and Demand Slide 9Chapter 2: The Basics of Supply and Demand Slide 9 Supply and Demand S The supply curve slopes upward demonstrating that at higher prices firms will increase output The Supply Curve Graphically Quantity Price ($ per unit) P1 Q1 P2 Q2