price determination in a competitive market Flashcards
market supply
the quantity of a good or service that firms plan to sell at given prices in a given time period
what relationship between price and quantity is there in a supply curve?
positive
why is there a positive relationship in a supply curve?
firms are profit maximisers so will supply more as it is profitable to do so
a change in only price leads to…
a movement along the supply curve
revenue
the money a firm receives from selling its output
profit
the difference between total sales revenue and total costs of production
conditions of supply
factors other than the price of the good that lead to a change in position of the supply curve
what causes a shift in the supply curve? (acronym)
PINTSWC
Productivity
Indirect taxes
Number of firms
Technology
Subsidies
Weather
Costs of production
what shift is a decrease in supply? and an increase?
decrease = left
increase = right
