Supply Flashcards
Schedule showing the amounts of a product which a producer is willing and able to produce and make available at each specific price during a period of time
Supply
This shows the relationship between the quantity supplied of a good and its price.
- picture of seller’s side of market
- illustrates direct relationship between price and quantity
- upward slope
- QS based on costs to produce
Supply Curve
list the quantities supplied at each different price
supply schedule
as price rises, the corresponding QS rises and vice versa:
producers are willing to offer more at higher prices
-Other things remaining the same, the higher the price of a good, the greater is the quantity supplied
It results from the general tendency for the marginal cost of producing a good or service to increase as the quantity produced increases
Producers are willing to supply only if they at least cover their marginal cost of production
Law of Supply
a minimum-supply-price curve
a supply curve
When any factor that influences selling plans other than the price of the good changes, there is a ______
An increase in supply causes the supply to shift rightward
A decrease in supply causes the supply curve to shift leftward
change in supple
- number of sellers
- factor costs
- technology
- taxes and subsidies
- prices of other goods
- seller expectations
Determinants of supply
- new technology lowers operating costs
- factor costs decrease
- taxes decrease or subsidies increase
- future prices are expected to rise
- price of alternative goods fall
- number of sellers increases
supply increases (shifts right) when those things happen and vice versa
a movement along a supply curve, which results from a change in price, shows a ___
change in the quantity supplied
If any of the determinants of supply change, holding price constant, there is ___
a change in supply
When the price of the good changes and other influences on selling plans remain the same, there is a
change in the quantity supplied and a movement along the supply curve
Each producer is willing and able to produce a good or service if he or she can make a profit
the amount produced depends on its price
-if the price goes up, more will be produced
-if the price goes down, less will be produced
Market supply is the collective summation of all producers’ individual supplies
individual supply and market supply
