Supply Flashcards
1
Q
What is the definition of Supply
A
The quantity of a good or service that producers are both willing and able to produce at any given price over a period of time.
2
Q
What is the law of supply?
A
As the price of a good or service increases the quantity supplied will increase or vice versa assuming ceteruis paribus.
3
Q
What does the term willing and able mean?
A
Willing = means the producer wants to produce it to maximise profit. Able = The producer does not have enough resources to produce more i.e. land, labour, capital and entrepreneurship.
4
Q
What is the definition of a supply graph
A
A graph that sets out the quantity of a good or service that producers are both willing and able to produce at any given price over a period of time.
5
Q
What is the definition of a supply schedule
A
A table that sets out the quantity of a good or service that producers are both willing and able to produce at any given price over a period of time.
