9 - Supply Flashcards
1
Q
What is revenue?
A
Income that a government or company receives
2
Q
What is the equation for total revenue?
A
Total revenue = price x quantity
3
Q
What is supply? Who does the supplying?
A
Supply is the quantity of a good or service that firms are willing to sell at a given price over a given time period
Firms supply goods and services
4
Q
What does the law of supply state?
A
Price of good increases, quantity supplied increases, expansion in supply
Opposite is contraction
5
Q
What does the supply diagram assume?
A
Firms are motivated to produce by profit
The cost of producing a unit increases as output increase
