Determinants of Supply Flashcards
1
Q
Supply
A
Quantity of goods/services that firms supply to the market at a given price at a particular price
2
Q
Supply Curve
A
Shows relationship between price and quantity supplied
3
Q
How the price affects the quantity supplied
A
The higher the price charged, the more quantity will be supplied
The lower the price charged, the less quantity will be supplied
4
Q
If supply increases/decrease at a given price…
A
increase: quantity supplied will rise
Decrease: the quantity supplied will decrease
5
Q
What can influence supply
(changes to..)
A
cost of production
productivity
number of suppliers
6
Q
A
