Supply

Question 1

What is supply?

Answer 1

Relationship between price and quantity supplied

Question 2

Why are supply curves upwards sloping ?

Answer 2

If price increases more profitable for firms, High prices encourage new firms to enter market

Question 3

Individual supply is..

Answer 3

Supply that a producer is willing and able to sell at a given price

Question 4

What is Joint supply ?

Answer 4

Increasing supply of one good causes and increase or decrease in another

Question 5

What is composite supply ?

Answer 5

When a good or service can be obtained from different sources

Question 6

What is competitive supply ?

Answer 6

If the raw materials producing the food in composite supply are perfect substitutes of each other

Question 7

What is a contraction of supply ?

Answer 7

At a lower price coupled with quantity relative to equilibrium is a contraction

Question 8

What is an expansion of supply ?

Answer 8

If price increases so does quantity this is an expansion

Question 9

What is the profit motive ?

Answer 9

Firms are driven by desire to make large profits, only changes in price will cause these movements

Question 10

Factors that shift supply curve, PINTSWC

Answer 10

P-Productivity
I- indirect taxes
N-Number of firms,
T- Technology
S-Subsidies
W-Weather
C-Costs of production