Supply

Question 1

What is the definition of Supply?

Answer 1

The quantity of a good or service the producer is willing and able to produce at any given range of prices over a period of time.

Question 2

What is the definition of a supply schedule?

Answer 2

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

Question 3

What is the definition of a supply graph?

Answer 3

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

Question 4

What is the Law of Supply?

Answer 4

As the price of the of a good or service increases the quantity supplied will increase (or vice versa) assuming ceterius paribus

Question 5

What does the term willing and able mean?

Answer 5

Willing = The producer wants to produce it to maximise his profit.

Able = The producer does not have enough resources to produce more ie land, labour, capital, and entreneurship.