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.

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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.

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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.

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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

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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.
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