Supply 3.2-2 Flashcards
What is the supply function a basis for?
The supply function is the basis for
the supply schedule and supply
curve
What is a supply schedule?
A supply schedule is a table that shows the relationship between the price of a good and the quantity of that good supplied
What is the supply curve?
A supply curve is a graph showing the relationship between the price of a
good and the quantity of the good that producers are willing and able to
supply to the market in a given period of time, ceteris paribus
What does the supply curve illustrate?
The law of supply
What is the law of supply?
the law of supply, which states that as the price of a good or service increases, the
quantity offered for sale generally increases
What does the upward slope of the supply curve indicate?
Opportunity costs
What happens to opportunity costs when the slope increases on the supply curve?
Opportunity costs are increasing
Is a supply schedule represented in a table or graph?
A table
After constructing a supply schedule, we take those values and do what with them?
We construct a graph called the supply curve
Where does price and quantity supplied go on the supply curve?
Price is place on the vertical axis and quantity supplied is place on the horizontal axis
What is the opportunity costs for a producer?
The opportunity cost for a producer is what that producer has to give up to produce an additional unit
What is placed on a supply schedule?
Price and quantity supplied
