Lesson 5 Flashcards
1
Q
What is the definition of the Supply
A
The various quantity of a good and service that sellers are willing/able to offer for sale at various prices during specific period
2
Q
What is the supply curve
A
It is a curve showing the direct relationship between the price (P) and the quantity supplied (Qs)
3
Q
What is the law of supply?
A
The law of supply is a statement of the direct relationship between price and quantity supplied
4
Q
What are the factors affecting supply
A
The factors affecting supply are
- Number of producers
- Expectations
- Technology
- Price of related goods
- Cost of inputs
5
Q
What is a substitute production
A
A substitute in production is a good that is produced as alternative to each other
6
Q
What is a complement in production
A
A complement in production is a good such that the production of one implies the production of others
