supply Flashcards
It is the quantity of a commodity in the market and available for purchase at a particular price.
supply
It shows the different
quantities that are offered for
sale at various prices.
supply schedule
It can be illustrated in
graphical form.
supply curve
It is a condition where the
quantity demanded is greater
than the quantity supplied at
the market.
shortage
It occurs when quantity
supplied is greater than
quantity demanded.
surplus
determinants of supply
technology
cost of production
number of sellers
taxes and subsidies
weather
This refers to techniques or methods of production.
technology
When we speak of the cost of production, we take into consideration the price of raw
materials which are needed together with the cost of labor.
cost of production
More sellers or more factories
means an increase in Supply.
number of sellers
Certain taxes increase cost of
production.
taxes and subsidies
Production of goods also depends on weather conditions
weather
the percentage change in price brings about a more than proportionate change in quantity
demanded.
Elastic Demand (PED > 1)
(coefficient of the elasticity is less than 1) is when an increase in price causes a smaller % fall in
demand
Inelastic Demand (PED < 1)
When the percentage change in demand is equal to the percentage change in price
Unitary Elastic Demand(PED = 1)
a small percentage change in
price brings about a change in
quantity demanded from zero to
infinity
Perfectly Elastic (PED = ∞)
