Supply Flashcards
1
Q
Define Supply
A
Quantity of a good or service that producers are willing and able to supply at a given price in a given time period
2
Q
What is the law of supply?
A
an increase in price results in an increase in quantity supplied
3
Q
What relationship does the supply curve show
A
Market and how much a firm is willing and able to sell
4
Q
What is market supply
A
the sum of the supplies of all the sellers in the market
5
Q
Reasons why supply curves are sloping upwards (positive relationship)
A
Profit Motive
Cover extra costs when output expands
6
Q
Factors affecting supply
A
Production Costs
Technology
Government taxes and subsidies
Price of substitutes
Market saturation
7
Q
What is joint supply
A
when one good is produced, another good is also produced from the same raw materials
