1.2.2 Supply Flashcards
What is supply
The quantity of a product that suppliers are willing and able to provide
What is the law of supply
If product price increases, quantity supplied will increase if product price decreases, quantity supplied will decrease
Why is supply important
It lets a business know the amount of money they should spend on supply for a certain product
What does a supply curve show
Point in which price and quantity meet to determine a given amount of supply
Why does the supply curve go from bottom left to top right
Quantity supplied will increase as price increases
How does changes in the costs of production affect supply
Cost of production increases, profit made from selling the product at the given price decreases- fall in supply
How does the introduction of new technology affect supply?
More efficient production techniques lower costs
