Supply

Question 1

What is the definition of Supply?

Answer 1

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

Question 2

What is the definition of a Supply Schedule?

Answer 2

A table that sets out the quantity of a good or service that a produce is both willing and able to produce at any given range of prices over a period of time.

Question 3

What is the definition of a Supply Graph?

Answer 3

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

Question 4

What is the law of Supply?

Answer 4

As the price of a good or service increases the quantity supplied will increase or vice versa assuming 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
i.e. land, labour, capital and entrepreneurship.