LS9- Supply Flashcards
1
Q
Supply
A
The quantity of a good or service that firms are willing to sell at a given price period over a given period of time
2
Q
Revenue
A
Income a firm/govt receives
Price x Quantity sold
3
Q
Law of supply…
A
As price increases, supply increases, vice versa
4
Q
Shift in supply curve
A
- changes in prices of related goods
- firms expectations about future prices- if prices will rise in future, drop supply now so more stock can be sold at a higher price
- changes in production costs
- improvements in technology
- number of firms in the market
- climate
