8 Supply

Question 1

quantity of goods and services that producer is willing and able to produce

Answer 1

supply

Question 2

desire and producing power

Answer 2

supply

Question 3

“nothing else changes,” everything else is constant

Answer 3

ceteris paribus

Question 4

↑ price, ↑ supply
↓ price, ↓ supply

Answer 4

law of supply

Question 5

directly proportional law

Answer 5

law of supply

Question 6

law where price is the only factor

Answer 6

law of supply

Question 7

when price increases, it becomes more profitable, so supply increases; when price decreases, it becomes less profitable, so supply decreases

Answer 7

law of supply

Question 8

as more goods are made, price must be increased to cover the cost of production

Answer 8

law of supply

Question 9

mathematical formula with Qs and P

Answer 9

supply function

Question 10

table showing change in Qs and P

Answer 10

supply schedule

Question 11

graph of Qs and P, always going up

Answer 11

supply curve

Question 12

along supply curve, change in price

Answer 12

movement

Question 13

of supply curve, change in non-price factors

Answer 13

shift

Question 14

if it moves to the right, it increases; if it moves to the left, it decreases

Answer 14

shift

Question 15

↑ price of input
↑ cost of production
↑ price of product
↓ supply
↓ demand

↓ price of input
↓ cost of production
↓ price of product
↑ supply
↑ demand

Answer 15

change in price of inputs (inputs/factors of production)

Question 16

meant to make things better

Answer 16

technology (method, device, etc)

Question 17

increases in amount of physical capital available relative to labor to help firms increase output

Answer 17

capital deepening

Question 18

↓ cost
↑ profit
↑ supply

Answer 18

change in level of technology

Question 19

future: ↑ price
now: ↓ supply

future: ↓ price
now: ↑ supply

Answer 19

change in expectations (of future prices)

Question 20

government can tax, subsidize, or regulate production

Answer 20

government policies

Question 21

can also encourage production of specific goods and services

Answer 21

government policies

Question 22

↑ taxes, put limit

Answer 22

government policies (regulation)

Question 23

↓ taxes, give subsidies

Answer 23

government policies (promotion)

Question 24

increase or decrease in number of producers in market affects level of supply of goods and services

Answer 24

change in number of firms

Question 25

pertains to producer’s sensitivity to changes in price on quantity willing to produce

Answer 25

price elasticity of supply

Question 26

long run

Answer 26

elastic >1

Question 27

short run

Answer 27

inelastic <1