Supply and the supply curve Flashcards
What is supply?
The desire and ability to provide a product at any given price.
What is the relationship between marginal cost and marginal revenue?
If the marginal cost of production is greater than the marginal revenue a supplier will have no desire to supply the market with additional product.
What does the law of supply state?
There is a positive relationship between the price of a product and the quantity supplied.
What is marginal benefit?
The value of an item according to someone
What does movement along the S curve represent ? What are these referred to as?
Changes in price, referred to as contractions or expansions
What does a shift in the S curve represent? How are these shifts termed?
Non-price factors cause shifts in the S curve. The shifts are called increases or decreases.
What causes a decrease in supply?
A change caused by a shift in the supply factor
What causes an expansion in supply?
Caused by a rise in the selling price of a product
