Supply Flashcards

1
Q

What is the definition of supply?

A

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.

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2
Q

What is a supply schedule?

A

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.

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3
Q

What is a supply curve?

A

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.

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4
Q

What is the definition of the Law of Supply?

A

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

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5
Q

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

A

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.

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