F3 - SEM1 - Supply, Quantity supplied and the Law of Supply - 2B

Question 1

What is Supply?

2A Demand, Quantity Demanded and the Law of Demand

Answer 1

• producer’s plan of production
• the quantities of good that a producer is willing and able to produce (or sell) at different prices

2A Demand, Quantity Demanded and the Law of Demand

Question 2

What is Quantity supplied?

2A Demand, Quantity Demanded and the Law of Demand

Answer 2

A quantity that a producer is willing and able to produce (or sell) at a particular price

2A Demand, Quantity Demanded and the Law of Demand

Question 3

Explain the law of Supply

2A Demand, Quantity Demanded and the Law of Demand

Answer 3

• When price rises, quantity supplied increases
• When price falls, quantity supplied decreases
• Other factors being constant

2A Demand, Quantity Demanded and the Law of Demand

Question 4

What are the 2 methods a supply can be represented?

2A Demand, Quantity Demanded and the Law of Demand

Answer 4

• Supply schedule - table which shows the relationship between prices and quantities supplied of a good
• Supply curve - a curve which shows the relationships between prices and quantities supplied of a good

2A Demand, Quantity Demanded and the Law of Demand

Question 5

What is Individual supply?

2A Demand, Quantity Demanded and the Law of Demand

Answer 5

the supply of a single producer

2A Demand, Quantity Demanded and the Law of Demand

Question 6

What is Market supply?

2A Demand, Quantity Demanded and the Law of Demand

Answer 6

the supply of all the producers in the market?

2A Demand, Quantity Demanded and the Law of Demand

Question 7

How to obtain Market supply?

2A Demand, Quantity Demanded and the Law of Demand

Answer 7

summation of all individual supply curves

2A Demand, Quantity Demanded and the Law of Demand