2.3 Supply

Question 1

Supply

Answer 1

The quantity of goods that sellers can and will sell at a given price over a given time.

Question 2

Why supply slopes up

Answer 2

Profit motive
High price neccessary to draw in marginal supplier
high price necessary to account for increasing marginal cost(individual)

Question 3

Law of supply

Answer 3

A price increases, quantity supply decreases.

Question 4

Market supply

Answer 4

Is the sum of all individual firms’ msupplies for a good.

Question 5

Competitive supply of two. or more products

Answer 5

Referes to productions of one or the other by one firm
-the goods compete for the usr of the same resources
and producing more of one of means of a product

Question 6

Joint supply

Answer 6

referes to production of goods that are derived from a single product
-. So that it is not possible to produce more of one without producing more of the other.

Question 7

conditions of supply_Non-price determinants of supply

Answer 7

Cost of production
Technology
Prices of other goods-eg.Joint and competitive supply.
Legislation and regulation_taxes and subsidies.
Expectations of the future

Question 8

Vertical supply curve

Answer 8

In some situation the quantity supplied cannot be changed.