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