Remember that the reduction in quantity supplied is a movement along the supply curve—the curve itself does not shift in response to a reduction in price. Similarly, the increase in quantity demanded is a movement along the demand curve—the demand curve does not shift in response to a reduction in price
this things move along the curve because they are already on the X/Y axis, other factors are not
More generally, a surplus is the amount by which the quantity supplied exceeds the quantity demanded at the current price.
company overproducing, the price exceeds the equilibrium price (the price they should be asking for) ex. they produce 35 million and $8, but buyers consume 15 million at that price surplus = 20 million lbs
The law of increasing opportunity cost holds that as an economy moves along its production possibilities curve in the direction of producing more of a particular good, the opportunity cost of additional units of that good will increase.
the more you produce one good (a) over another (b), the more the opportunity cost of producing that good (a) will increase.
Plant 3 has a comparative advantage in snowboard production because it is the plant for which the opportunity cost of additional snowboards is lowest.
slope is the smallest, OC is the lowest, plant 3 has highest comparative advantage