1.2.4 - Supply

Question 1

What Is Supply?

Answer 1

The quantity of a good or service that producers are willing and able to produce at a given price in a given time period.

Question 2

What Does The Law Of Supply State?
(3 Points)

Answer 2

~ There is a direct relationship between price and quantity supplied.

~ As the price increases, QS increases. Vice versa.

~ Assuming ceteris paribus.

Question 3

What Do Movements Along The Supply Curve Look Like?

Answer 3

Question 4

What Causes Movements In The Supply Curve?

Answer 4

A change in the price of a good.

Question 5

Why Is The Supply Curve Upwards Sloping?

Answer 5

Due to the profit motive that producers have.

Question 6

What Do Shifts In The Supply Curve Look Like?

Answer 6

Question 7

What Causes Shifts In Supply?

Answer 7

Conditions of supply.

Question 9

What Are The Conditions Of Supply?

Answer 9

PINTSWC.

Question 10

What Does PINTSWC Stand For?

Answer 10

Productivity.
Indirect tax.
No of firms.
Technology.
Subsidy.
Weather.
Costs of production.

Question 11

If There Are More Firms In The Market, What Way Would Supply Shift?

Answer 11

Right, more supply. Vice versa.

Question 12

Which Of The Conditions Of Supply Affect Costs Of Production?
(4 Points)

Answer 12

~ Productivity.

~ Indirect taxes.

~ Technology.

~ Subsidy.