The Theory of Supply Flashcards
The amount of a product that different firms are able and are willing to offer for sale at different possible prices is ……………………………….
quantity supplied
Other things remaining same, if the price of the inputs of production rise and profits of the firm will fall, the firm will supply ………………… the product
less of the product
Other things remaining same, if the price of the inputs of production fall and profits of the firm will rise, the firm will supply ………………… the product
more of the product
If the goal of a firm is sales maximisation rather than profit maximisation, the firm may supply ……………………. at each price level
more of the product
If a number of firms sell the same type of product, the supply of the product in the market will …………………………
increase
If the producers of a commodity expect a fall in the price of their product in the near future, they will supply …………………………….
more of it
If the producers of a commodity expect a rise in the price of their product in the near future, they will supply …………………………….
less of it
What is the law of demand?
P↑ S↑
P↓ S↑
If the goal of a firm is profit-maximisation, a ……………………… shift in the supply curve is witnessed
rightward
Who maintains stocks or inventories?
FCI - Food Corporation of India
Supply is a ……………………….. concept which is expressed over a period of time
flow concept
The FCI maintains ……………… or …………………. to meet temporary fluctuations in the market demand
stock or inventories
Stocks = Unsold Commodity of the previous period + ………………………………………… - …………………………………….
Production of the commodity at the present period - Sales of the commodity at the present period
……………. means a ‘potential supply’
Stocks
……………………. implies the quantity which is actually brought into the market by the seller
Supply
