T3 - Price Determination

Question 1

What does a supply curve show

Answer 1

How much a firm is willing to supply at a given price

Question 2

What do higher selling prices imply

Answer 2

Higher profits

Question 3

What incentivises firms to expand production

Answer 3

Higher selling prices

Question 4

What is supply

Answer 4

How much firms are willing to produce at given price levels

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Question 5

What do firms want

Answer 5

To maxamise profits

Question 6

What do increases in prices do to markets

Answer 6

Increase the number of suppliers in it

Question 7

What do firms consider when producing at different price levels

Answer 7

Trade offs

Question 8

Factors casuing shifts in supply

Answer 8

Price of raw materials
Tech changes
Productivity
Regulation
Wages
Subsides
Indirect taxes
Economic expectation
Firms objectives
Number of sellers in a market

Question 9

What is joint supply

Answer 9

When a change in supply of one good changes the supply of another

Question 10

What is this an example of - Fall in steel supply causing a fall in car supply

Answer 10

Joint supply