supply

Question 1

supply

Answer 1

quantity a producer is willing and able to produce

Question 2

stock

Answer 2

how much exists on the the market that can be offered on short notice

Question 3

law of supply

Answer 3

price rises = quantity supplied increases

Question 4

conditions of supply - (PINTSWC)

Answer 4

Productivity - high productivity = outward shift in supply
Indirect taxes = inward shift in supply
Number of firms = LARGER SUPPLY
Techology = outward shift in supply
subsidies = outward shift in suplu
weather = agricultural produce

Question 5

What is the profit motive and the new entrants effect? How does it explain the upward slope of the supply curve?

Answer 5

• Profit motive: Encourages businesses to maximize profits.
• New entrants effect: Attracted to industries with potential profits.
• Increased competition: New firms entering the market.
• Upward slope of supply curve: Reflects firms producing more as prices rise.
• Supply and demand: Relationship influencing market dynamics.

Question 6

What is the difference between a movement a long and a shift in the supply curve?

Answer 6

Movement along the supply curve: Occurs due to a change in price.
Shift in the supply curve: Caused by factors other than price. Non-price factors: Include input costs, technology, and regulations.

Question 7

What are the factors that may cause the supply curve to shift?

Answer 7

• Input costs: Changes in the prices of raw materials or labor.
• Technology: Innovations that affect production processes.
• Government regulations: Alterations in industry-related laws.
• Taxes and subsidies: Changes in tax rates or government subsidies.
• Number of sellers: Entry or exit of firms in the market.
• Expectations: Anticipated future conditions affecting supply.
• Natural disasters: Events impacting production or transportation.
• Changes in opportunity cost: Alternatives in production choices.
• Exchange rates: Effects on imported input costs.
• Environmental factors: Conditions influencing production.
• Political instability: Shifts in government affecting supply.

Question 8

Can you show and calculate total revenue using a supply curve?

Answer 8

Total Revenue=Equilibrium Quantity×Equilibrium Price

Question 9

What is producer surplus? How do you calculate it?

Answer 9

Producer surplus is a measure of the benefit or profit that producers receive when they sell goods or services in the market at a price higher than the minimum price they would be willing to accept.

Question 10

What is meant by ‘joint supply’? Can you give examples?