2.3 Supply Flashcards
What is Supply?
The quantity of a good or service that producers are willing and able to produce at a given price in a given period of time.
What is Joint Supply?
Where a firm produces more than one good or service together.
What is Composite Supply?
Where a product produced by a firm serves more than one market.
What is Competitive Supply?
A situation in which a firm can use its factors of production to produce alternative products.
What is individual supply?
The supply that a producer is willing and able to sell at a given price in a given period of time.
What is market supply?
The sum of all individual supplies in a market.
Why are supply curves upwards sloping?
If price increases, it is more profitable for firms to supply the good, so supply
increases. High prices encourage new firms to enter the market, because it seems profitable, so supply increases. With larger outputs, firm’s costs increase, so they need to charge a higher price to cover the costs
Only what can cause movements along a supply curve?
Only changes in price will cause these movements along the supply curve.
What stays the same when the supply curve shifts?
The price.
What does PINTSWC stand for?
Productivity
Indirect Taxes
Number of Firms
Technology
Subsidies
Weather
Costs of Production
