LS9 - Supply Flashcards
What is revenue?
The income that a government or company receives
What is total revenue?
Price x quantity
What do firms in markets do?
Supply goods and services
What is supply?
The quantity of a good or service that firms are willing to sell at a given price over a period of time.
What’s the law of supply?
Ceteris paribus, as the price of a good increases, quantity supplied increases. As the price of a good decreases quantity supplied decreases.
An increase in price leads to what change to a support curve?
An increase in price results to an extension/ expansion in supply this is represented by a movement along the supply curve. (To the right)
A decrease in price leads to what occurring to a supply curve?
A contraction in supply which is represented by a movement along the supply curve.
