Supply Economics (Micro) Flashcards
What is supply?
Supply is the quantity of goods that sellers are prepared to sell at any given price over a period of time
What happens to supply when prices increase?
Quantity supplied also increases. An extension in supply
What does the supply curve show?
It shows the quantity that will be supplied over a period of time at any given price
What happens when prices decrease?
Quantity supplied decreases. A contraction of supply
What causes a shift in supply?
A change in the cost of production shifts the supply curve
What can change the costs of production?
Changes in technology - fall in cost of production
Prices of other goods - beef prices increase, increased supply of beef, also an increased supply of hide and leather. (Increased price of beef, increased supply of leather)
