supply Flashcards
what is supply defined as?
supply is the amount of good and services are producer is willing and able to sell at a given price level
does supply refer to the whole market or individual firms?
supply refers to the whole market
when does an extension in supply occur?
an extension in supply occurs when the price of a good or service increases
how is supply shown on a graph?
supply is shown as upward sloping on a graph, labelled as S
when does a contraction in supply occur?
a contraction in supply occurs when the price of a good or service falls
what are the determinants of demand?
the determinants of demand are:
- prices of raw materials
- technological improvements
- changes in labour productivity
- regulations and bureaucracy
- wage rates
- subsidies
- indirect taxes
- expectations about future prices
- objectives of firms
- number of sellers in the market
- joint supply
what is joint supply?
joint supply is when one good is produced, another good is also produced from the same raw materials
what is an example of goods or services with a joint supply?
cows have a joint supply as it can be used to produce beef and leather
PES
price elasticity of supply
