1.2.2 supply

Question 1

supply (def.)

Answer 1

the quantity of a good or service that a producer is willing and able to supply onto the market over a range of prices in a given time period

Question 2

quantity supplied (def.)

Answer 2

the quantity of goods and services that a producer is willing and able to supply onto the market at a given price in a given time period

Question 3

basic law of supply

Answer 3

as the price of a good rises, firms increase supply to the market

as the price of a good falls, firms decrease supply to the market

Question 4

non-price determinants of supply (PINTSWC)

Answer 4

productivity

indirect taxes

number of firms

technology

subsidies

weather

costs of production