Supply Flashcards
What is the definition of supply?
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.
what is the definition of a supply curve?
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.
what is the definition of a supply schedule.
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.
What is the law of supply?
As the price of a good or service increases the quantity supplied will increase (or vice versa) assuming ceterius paribus
What does the term willing and able mean?
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.