Chapter 3: Supply in a market Flashcards
1
Q
Supply
A
The amount offered for sale at each given price level.
2
Q
Planned supply
A
The amount producers plan to produce at each given price.
3
Q
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.
4
Q
Market supply
A
The sum of all individual firm’s supply curves at each given price.
5
Q
Extensions in supply
A
Where there is an increase in supply because market price has risen.
6
Q
Contraction in supply
A
When the amount offered for sale is reduced because the price level has fallen.
7
Q
Joint supply
A
When production of one good also results in the production of another.
