Supply Flashcards
1
Q
what is supply
A
the quantity that producers are willing to produce at a time and price
2
Q
what is the law of supply
A
describes a postive relationship between price and quantity supplied (price increase = quantity increase)
3
Q
is the supply curve positively or negatively sloped
A
positively reflecting the law of supply
4
Q
what are the two types of changes in supply
A
movement along curve
shift of curve
5
Q
explain movement of curve to do with increase and decrease of price
A
increase price = increase quantity supplied
decrease price = decrease quantity supplied
6
Q
explain shift of curve to do with increase and decrease of supply
A
increase supply = shifts to right
decrease supply = shift to left
