11) Supply Flashcards

1
Q

What is supply?

A

The quantity of goods sellers are willing to sell at any given price over any given time period

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2
Q

What factors would cause an entire S-curve to shift?

A

1) Costs of production
2) Indirect taxes
3) Subsidies
4) Technology
5) The prices of other goods

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3
Q

What is producer surplus?

A

The difference between the market price and the price a producer was willing to supply the good for

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4
Q

What is PES?

A

Price elasticity of supply is the responsiveness of supply to a change in the price of a good

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5
Q

What is the formula for PES?

A

Percentage change in quantity supplied / Percentage change in price

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6
Q

Which factors determine PES?

A

1) Level of spare capacity
2) Ease/cost of factor mobility
3) Stocks/ability to store output
4) Time

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7
Q

What is the SR?

A

The period of time when at least one of the factors of production is fixed

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8
Q

What is the LR?

A

The period of time when all factors of production are variable

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