Chapter 3 - Supply In A Market Flashcards
0
Q
Define Planned Supply
A
The amount producers plan to produce at each given price.
1
Q
Define Supply
A
Amount offered for sale at each given price.
2
Q
Define Actual Supply
A
The amount that producers in fact produce. This may differ from planned supply for a variety of reasons such as breakdowns in production, staff absences, etc.
3
Q
Define Extension In Supply
A
When there is an increase in supply because the market price has risen.
4
Q
Define Contraction In Supply
A
When the amount offered for sale is reduced because the price level has fallen.
5
Q
Define Joint Supply
A
When the production of one good also results in the production of another.
