Supply-8 Flashcards
What is supply?
Supply is the willingness and ability to buy a product.
What is the difference between supply and production?
Supply is when you have stock that is up for sale, but production is the number of products that have been made.
How are supply and price related?
Supply and price are directly related; when price goes up so does supply and when supply decreases so does price. This is because the firm would be more willing to supply when the price of the product is higher, as it makes it easier for them to cover production costs.
What is individual supply?
Individual supply is the supply that is made by one firm.
What is market supply?
Market supply is the supply of the same product made by a different firm.
What is a supply schedule?
A supply schedule is a table that shows the different quantities supplied at different prices.
What is an extension of supply?
An extension in supply occurs when the price increases, and hence the supply increases.
What is a contraction of supply?
A contraction of supply occurs when the price decreases and so does the supply.
What is the condition of supply?
The condition of supply states that supply is not always demanded based on price and instead can be based on the weather. For a few products, supply can change according to the weather, such as rain fertiliser.
What does a leftward shift in supply represent?
It represents a decrease in supply.
What does a rightward shift in supply represent?
It represents an increases in supply.
What does a change in price do to the supply curves?
It moves along the line of supply.
What causes the change in supply?
- Cost of production
- Improvements in technology
- Taxes
- Subsidies
- Weather and health of livestock
- Prices of other products
- Disasters and wars
- Discoveries and depletions of commodities.
