2.2 supply

Question 1

What is supply

Answer 1

quanity of good that producers willing and able to produce at given price over particular time period.

Question 2

Law of Diminishing Marginal Returns

Answer 2

The law of diminishing returns says that, if you keep increasing one factor in the production of goods (such as your workforce) while keeping all other factors the same, you’ll reach a point beyond which additional increases will result in a progressive decline in output.

Question 3

Increasing Marginal Costs

Answer 3

The costs of producing an additional unit of output.

Question 4

Law of Supply

Answer 4

As the price of a good increases the supply of that good increases. Positive relationship.

Question 5

Change in the supply curve

Answer 5

1. Change in costs of factors of production.
   - ability of firm to produce is intimately related to cost of production.
2. price of related goods
   - Joint supply= 2 or more goods come from same product
   - when demand for one increases more resources will be focused on production of that good so the supply for others will also increase.
3. indirect taxes and subsides
   - Taxses that are collected at point of sale and then transferred by seller to government
   - market supply decreases when taxses increased
4. future price expectation
5. changes in technology
   - new tech= positive increase in firms productivity impacting supply
6. number of firms

Question 6

Supply Schedule

Answer 6

relationship between the price of goods or services versus and the number of goods supplied .