11) Supply

Question 1

What is supply?

Answer 1

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

Question 2

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

Answer 2

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

Question 3

What is producer surplus?

Answer 3

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

Question 4

What is PES?

Answer 4

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

Question 5

What is the formula for PES?

Answer 5

Percentage change in quantity supplied / Percentage change in price

Question 6

Which factors determine PES?

Answer 6

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

Question 7

What is the SR?

Answer 7

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

Question 8

What is the LR?

Answer 8

The period of time when all factors of production are variable