Supply Flashcards
What do we mean by ‘supply’ in economics?
the quantity of a good or service producers are willing and able to sell at different prices over a period of time.
How do we derive the supply curve
The supply curve is derived from the relationship between price and quantity supplied, holding other factors constant.
Why is the market supply curve upwards sloping
Higher prices provide an incentive for producers to supply more
What is an increase/ decrease in supply?
An increase in supply means more is supplied at every price (curve shifts right), while a decrease means less is supplied at every price (curve shifts left).
What factors would cause a supply curve to shift?
Factors include changes in production costs, technology, taxes, subsidies, number of producers, and expectations.
What is meant by joint supply in economics?
Joint supply occurs when producing one good automatically leads to the production of another, like beef and leather.
What is meant by competitive supply in economics?
Competitive supply occurs when resources are used to produce one good, reducing their availability for another, like land for wheat or barley.
