Supply Flashcards
1
Q
What is the definition of supply?
A
The quantity of a good or service the producer is both willing and able to produce at any given range of prises over a period of time.
2
Q
what is the definition of a supply curve?
A
A graph showing the quantity of a good or service the producer is willing and able to produce at any given range of prises over a period of time.
3
Q
what is the definition of a supply schedule.
A
A table showing quantity of a good or service the producer is willing and able to produce at any given range of prises over a period of time.
4
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 ceterius paribus
5
Q
What does the term willing and able mean?
A
Willing = the producer wants to produce it to maximise his profit. Able = the producer does not have enough resources to produce more i.e land, labour, capital and entrepreneurship.
