Supply

Question 1

Competitive supply

Answer 1

Goods in competitive supply are alternative products a firm could make with its resources. E.g. a farmer can plant potatoes or carrots. An electronics factory can produce smart-phones or smart-watches. Land has many uses – e.g. commercial/residential.

Question 2

Excess supply

Answer 2

When supply is greater than demand and there are unsold goods in the market. Surpluses put downward pressure on the market price.

Question 3

Law of supply

Answer 3

The law of supply is that there is a positive relationship between the price of a good and supply. As prices rise, we see an expansion of supply. If price fall, there should be a contraction of supply.

Question 4

Market supply

Answer 4

Market supply is the total amount of an item producers are willing and able to sell at different prices, over a given period of time e.g. one month. Industry, a market supply curve is the horizontal summation of all each individual firm’s supply curves.

Question 5

Supply

Answer 5

Quantity of a good or service that a producer is willing and able to supply onto the market at a given price in a given time period.

Question 6

Supply chain

Answer 6

Different stages of making, distributing and selling a good or service from the production of parts, through to distribution and sale of the product.

Question 7

Supply curve

Answer 7

The relationship between market price and quantity supplied onto the market.