chapter 8 - supply Flashcards

1
Q

definition of:

supply

A

willingness and ability of firms to provide goods and services at given price levels

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2
Q

determinants of supply

A
  • time
  • weather
  • opportunity cost
  • tax
  • innovation
  • production costs
  • subsidies
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3
Q

definition of:

extension

A

an increase in quantity supplied following an increase in its price

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4
Q

definition of:

contraction

A

a decrease in quantity supplied following a decrease in its price

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5
Q

definition of:

market supply

A

aggregation of all supply at each level

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6
Q

what causes a movement along the supply curve?

A

a change in its price

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7
Q

what causes a shift in the supply curve?

A

non-price factors (TWO TIPS)

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