Supply

Question 1

Definition of supply.

Answer 1

The quantity of a good or service that a producer is willing and able to supply at any given price over 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 willing and able to supply at any given price over 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 willing and able to supply at any given price over 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 viva versa) Assuming ceterius paribus.

Question 5

What does 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
- entrepreneurship