chapter 8- supply Flashcards
1
Q
definition of supply
A
is the quantity of a product that producers are willing and able to sell @ a given price during a certain period of time, ceteris paribus
2
Q
state the law of supply
A
there is a positive relationship between price and the quantity supplied of a product.
3
Q
what are the determinants of supply
A
weather expectations of future technology price of related goods input price(COP) govt policy sellers- number of sellers
4
Q
what is the market supply curve
A
aggregation of all supply at each price level
5
Q
when is there movement along a supply curve
A
change in price
6
Q
what does an extension in supply mean
A
higher quantity supplied due to an increase in price
7
Q
what does a contraction in supply mean
A
lower quantity supplied due to fall in price
8
Q
when is there a shift in supply curve
A
a change in non price factors affecting supply of good or service
