Lesson 5- The supply curve Flashcards
1
Q
Define Supply
A
Refers to the quantity hat producers are willing and able to sell at a given price over a given period of time.
2
Q
Define supply schedule
A
A supply schedule demonstrates various quantities supplied at various prices
3
Q
What is the law of supply?
A
There is a proportional relationship between price and quantity supplied.
4
Q
Define supply curve
A
A supply curve is a diagram that demonstrates a supply schedule.
5
Q
What will happen to Qs if price increases?
A
Qs will increase
6
Q
What will happen to Qs if price falls?
A
Qs will fall
7
Q
How will price changes be shown in the supply curve?
A
It will be a movement along the curve
