Module 6

Question 1

quantity supplied

Answer 1

amount producers are willing to produce and sell at some specific price

Question 2

supply schedule

Answer 2

table showing how much of a good or services is supplied at different prices

Question 3

Supply curve

Answer 3

graph of supply schedule

shows relationship between quantity supplied and price

Question 4

Law of supply

Answer 4

higher price –> higher quantity supplied

Question 5

change in supply

Answer 5

shift in entire supply curve

changes quantity supplied at any price

Question 6

movements along supply curve

Answer 6

changes in quantity supplied as a result of change in price

Question 7

causes of shifts in supply

Answer 7

1) changes in input prices
2) changes in prices of related goods or services
3) changes in technology
4) changes in expectations
5) changes in number of producers

Question 8

equillibrium

Answer 8

when no individual would be better off doing something different

Question 9

equilibrium price

Answer 9

aka market clearing price

price at which quantity demanded = quantity supplied

Question 10

equilibrium quantity

Answer 10

quantity bought and sold at equilibrium price

Question 11

surplus

Answer 11

excess supply

quantity supplied > quantity demanded

Question 12

shortage

Answer 12

excess demand

quantity demanded > quantity supplied

Question 13

supplier substitutes

Answer 13

products suppliers can produce with more or less the same resources

Question 14

factor costs

Answer 14

inputs in production

Question 15

market

Answer 15

places where people come together to buy and sell things