Supply

Question 1

Definition of supply?

Answer 1

The quantity of a good or service that a producer is both willing and able to provide at a range of given prices within a period of time.

Question 2

What is a supply schedule?

Answer 2

A table that sets out the quantity of a good or service that a producer is both willing and able to provide at a range of given prices within a period of time.

Question 3

What is a supply curve?

Answer 3

A graph that sets out the quantity of a good or service that a producer is both willing and able to provide at a range of given prices within a period of time.

Question 4

What is the definition of the law of supply?

Answer 4

As the price rises the quantity supplied will increase or vice versa assuming ceterius paribus.

Question 5

What does the term willing and able mean in terms of supply definition?

Answer 5

Willing = The producer wants to produce the good or service

Able = They have the means to produce them (land, labour, capital and entrepreneurship).