Supply Flashcards
What is a:
Market
A situation where buyers and seller communicate and exchange goods and services for money
What is:
Supply
The quantity of goods and services that a supplier is willing to offer to the market at a given price in a given period of time
What is the:
Law of Supply
The law of supply states that as price increases, quantity supplied will increase. Likewise, if the price of a good falls, the quantity supplied will decrease.
What is:
Contraction of supply
When quantity supplied decreases as a result of a fall in price. This is shown by a movement along a supply curve
What is:
Expansion of supply
When quantity supplied increases as a result of an increase in price. This is shown by a movement along a supply curve
What is:
Market supply
the quantity supplied by all producers in the market
What will cause a:
Movement along the supply curve
A change in price
What is the acronym for things that will cause a:
Shift in the supply curve
Productivity
Indirect taxes
New entrants
Technology
Subsidies
Weather
Costs of production
Why do:
Costs of production shift the supply curve
For the same fixed price, the firm will supply less or more depending on how much they can produce which is influenced by their costs.
