Supply

Question 1

Definition of Supply

Answer 1

The quantity of a good or service that producers are willing + able to produce at any given range of prices over a period of time.

Question 2

Definition of Supply Schedule

Answer 2

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

Question 3

Definition of Supply Graph

Answer 3

A graph that shows the quantity of a good or service that producers are willing + 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 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 recourses to produce more ie. land, labour, capital and entrepreneurship.