Supply Flashcards
1
Q
Supply
A
Supply is the amount of a product that suppliers will offer to the market at a given price.
2
Q
Basic law of supply
A
The higher the price of a particular product or service, the more that wil be offered to the market.
3
Q
Supply curve
A
Check book
4
Q
supply of a good is fixed
A
The supply curve would be vertical. This will happen if supply can’t change even when prices do. Ex, a stadium cannot add seats even if demand increase.
5
Q
Factors leading to a change in supply
A
-Changes in cost of production.
-External shocks (weather, world events, government, price of related goods)
-Government subsidies.
