1.2.4 Supply

Question 1

Competitive supply

Answer 1

alternative products from one firm

E.G. a farmer can plant potatoes or carrots

Question 2

Excess supply

Answer 2

when supply is greater than demand and there are unsold goods in the market.
Surpluses put downward pressure on the market price

Question 3

Law of supply

Answer 3

That is a positive relationship between the price of a good and supply.
As prices rise we see an expansion of supply.
If price falls there should be a contraction of supply

Question 4

Market supply

Answer 4

The total amount of a good producers (all in industry) are willing and able to sell at a different prices over a given period of time

A market supply curve is the horizontal summation of all each individual firms supply curves

Question 5

Supply

Answer 5

Quantity of a good that a producer is willing and able to supply onto the market at a given price in a given period of time

Question 6

Supply chain

Answer 6

Different stages of making, distributing and selling a good or service from the production of parts, through the distribution and sale of the product

Question 7

Supply curve

Answer 7

The relationship between market price and quantity supplied onto the market