Supply in a market Flashcards
1
Q
What is supply?
A
The amount offered for sale at each given price level
2
Q
What is market supply?
A
the sum of all the individual firm’s supply curves at each given price
3
Q
Why is the supply curve upward sloping?
A
The higher the price, more firm will enter the market to maximise profits, thus, increasing overall supply
4
Q
What causes a movement along the supply curve?
A
Price
5
Q
If price rises, what happens to the supply curve?
A
An extension in the supply curve
6
Q
If price falls, what happens to the supply curve?
A
A contraction in the supply curve
7
Q
What causes a shift in the supply curve? (6)
A
Productivity Indirect taxes Number of firms Technology Weather Cost of production
8
Q
What is joint supply?
A
When the production of one good also results in the production of another
