Supply

Question 1

What is the definition of supply?

Answer 1

The quantity of a good or service that a producer is both willing and able to provide at a range of given prices within a period of time.

Question 2

What is a supply schedule?

Answer 2

A table that shows the quantity of a good or service that a producer is both willing and able to provide at a range of given prices within a period of time.

Question 3

What is a supply curve?

Answer 3

A graph that sets out the quantity of a good or service that a producer is both willing and able to provide at a range of given prices within a period of time.

Question 4

What is the definition of the Law of Supply?

Answer 4

As the price rises, the quantity supplied will increase, or vice versa, assuming Ceteris Paribus.

Question 5

What does the term willing and able mean in terms of supply and demand?

Answer 5

Willing - The producer wants to produce the good or service.

Able - The producer has the means (Land, Labour, Capital, Entrepreneurship) to produce the good or service.