Supply

Question 1

Definition of Supply

Answer 1

The quantity of a good or service that a producer is willing and able to produce at any given range of prices over a period of time.

Question 2

Supply Curve

Answer 2

A graph showing the quantity of a good or service that producers are both willing and able to produce at any given price over a certain period of time.

Question 3

Supply Scehdule

Answer 3

A table that sets out the quantity of a good or service that a producer is wiling and able to produce at a range of prices within a given time frame.

Question 4

What is the law of supply

Answer 4

As the price of a good or service rises the quantity supplied will increase (or vice versas) assuming ceterius paribus.

Question 5

What does the term willing and able mean?

Answer 5

Willing = The producer wants to produce it to maximise his profit.
Able = The producer does not have enough resources to produce more ie. Land, labour, capital & entrepreneurship.2