Short-Run Aggregate Supply

Short-Run Aggregate Supply (SRAS) represents the total value of goods and services that producers in an economy are willing and able to supply at different price levels, assuming some production costs are fixed. In the short term, factors like wages and raw material costs don’t change immediately, so higher prices usually motivate producers to supply more, while lower prices result in less production. SRAS reflects how businesses respond to changing prices in the short run, balancing production costs and market demand until longer-term adjustments are possible.