Supply Flashcards
1
Q
Definition of Suppy:
A
The willingness/ability for sellers to sell a good/service
2
Q
Law of Supply:
A
Price and quantity supplied have a positive relationship
3
Q
Change in Quantity supplied
A
- Movement along the supply curve
- Caused by a change in price
4
Q
Change in Supply
A
- Shift of the supply curve
- Caused by a change in a non-price factor
5
Q
The non-price factors of supply (6):
A
- Taxes and subsidies
- Weather and Natural Disasters
- Production costs
- Technology
- Prices of substitute goods
- Availability of factors of production
6
Q
Definition of Competitive Supply:
A
When the supply of 2 different goods compete for the same FOP during their production
7
Q
Definition of Joint supply:
A
When a good is automatically produced if another good is produced
8
Q
Extension in supply
A
An increase in the quantity supplied of a product caused by an increase in its price
9
Q
Contraction in supply
A
A fall in the quantity supplied of a product caused by a decrease in price
