Supply Flashcards
Sugar is an input used to produce candy bars, if the price of sugar increases what happens?
The supply of candy bars will decrease
On a supply graph, which axes are price & quantity on?
Price = y; quantity = x
What does the law of supply state?
As price increases, quantity increases
Why does the supply slope curve upward?
Direct relationship between price and quantity supplied
What would a new technology that reduces the cost of producing shoes cause?
Supply curve for shoes shifts to the right
Define supply
The quantity of a good or service that producers are willing and able to offer for sale at each possible price during a given time period
Define profit
The difference between the cost of producing and the price received for selling
What is a shift along the curve and what does it reflect?
Change in the quantity supplied; reflects change in prices
What is a shift of the curve & what does it reflect?
Change in supply; reflects change in market conditions
