Intro To Supply Flashcards
1
Q
What is supply?
A
the quantity of goods or services that producers are willing and able to produce at a given price point in a given time
Example sentence: The supply of smartphones increased when the price decreased.
2
Q
What are the determinants of supply?
A
PINTSWC
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3
Q
What is the Law of supply?
A
as price increases, quantity supplied increases. As price decreases, quantity supplied decreases assuming ceteris paribus. Therefore direct relationship between price and supply
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4
Q
What are the costs of production?
A
transport, oil, labour, raw material, regulations, utility
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