law of supply

Question 1

law of supply

Answer 1

suggests when prices increase, quantity supplied increases; when prices decrease, quantity supplied decreases

Question 2

quantity supplied

Answer 2

is the amount of a good or service producers are willing and able to supply at different prices during a given period of time

Question 3

change in supply

Answer 3

is any change that increases (decreases) the quantity supplied at every price

Question 4

determinants of supply

Answer 4

are factors that impact supply: entry/exit of sellers, expectations, taxes/subsidies, technology/input prices

Question 5

subsidy

Answer 5

is a benefit given to an individual, business, or institution, usually by the government

Question 6

taxes

Answer 6

are placed on goods to make additional money, in the case of supply it will decrease the supply as producers will not want to produce goods and pay taxes

Question 7

entry of seller

Answer 7

will shift the supply to the right because more goods are now available

Question 8

exit of sellers

Answer 8

will shift the supply to the left because less goods are availble

Question 9

technology

Answer 9

will help increase the production of goods and services as producers will be able to make goods more efficient and cheaper

Question 10

input prices

Answer 10

are related to the cost it takes to produce goods from raw materials. If the input price of a good increases, supply will shift left and producers will make less. If the input price of goods decreases, supply will shift to the right as the producer will make more.