Suppy Flashcards
1
Q
What is individual supply?
A
Individual supply of a good/service is the quantity a supplier would supply at different prices
2
Q
What is market supply?
A
Market supply is the total quantity of a good/service that would be supplied by all the individual suppliers at different prices
3
Q
What does the law of supply state?
A
When the price of a good increases, the quantity supplied of a good increases. When the price of a good decreases, the quantity supplied of a good decreases
4
Q
What are the exceptions to the law of supply?
A
Fixed supply, Minimum price and limited capacity
5
Q
What are the factors that affect supply?
A
change in price of the good itself, change in production costs, taxation, price of other goods, technology and unplanned events
