chapter 8 - supply Flashcards
1
Q
definition of:
supply
A
willingness and ability of firms to provide goods and services at given price levels
2
Q
determinants of supply
A
- time
- weather
- opportunity cost
- tax
- innovation
- production costs
- subsidies
3
Q
definition of:
extension
A
an increase in quantity supplied following an increase in its price
4
Q
definition of:
contraction
A
a decrease in quantity supplied following a decrease in its price
5
Q
definition of:
market supply
A
aggregation of all supply at each level
6
Q
what causes a movement along the supply curve?
A
a change in its price
7
Q
what causes a shift in the supply curve?
A
non-price factors (TWO TIPS)
