supply

Question 1

supply

Answer 1

the ability and willingness of firms to provide goods and services at each price in a given time period

Question 2

law of supply

Answer 2

the quantity supplied varies directly with price

Question 3

market supply

Answer 3

the total supply of a good or service as a result of adding together all individual producers supplies.

Question 4

movement along the supply curve

Answer 4

when the price changes leading to a movement up (expansion) or down (contraction) on the existing supply curves

Question 5

shift of the supply curve

Answer 5

the complete movement of the existing supply curve either outwards (right) or inwards (left)

Question 6

PES

Answer 6

the responsiveness of quantity supplied to a change in price of the product

Question 7

elastic supply

Answer 7

when the percentage change in quantity supplied is greater than the percentage change in price

Question 8

inelasticity supply

Answer 8

when the percentage change in price is greater than the percentage change in quantity supplied

Question 9

price elastic supply curve

Answer 9

nearly horizontal line low to high, value between 1 and infinity

Question 10

price inelastic supply curve

Answer 10

nearly vertical line low to high value from 0 and 1

Question 11

perfectly elastic supply curve

Answer 11

horizontal line value infinity

Question 12

perfectly inelastic supply curve

Answer 12

vertical line value 0

Question 13

unitary price elastic supply curve

Answer 13

straight line from the origin value -1

Question 14

PES equation

Answer 14

% change in quantity supplied / %change in price