Supply

Question 1

Define the quantity supplied

Answer 1

The amount of the good or service that producers are willing and able to supply at a specific price.

Question 2

Explain the law of supply

Answer 2

It is in direct relationship with the demand.
The higher the price of a good or service, the higher the quantity supplied
The lower the price of a good or service, the lower the quantity supplied.

Question 3

Explain the supply curve

Answer 3

The supply curve slopes up from left to right and has a positive gradient, due to the law of supply

Question 4

Read through background information pg 96