Supply Flashcards
What is supply?
The quantity of products firms are able and willing to provide at different market prices In a given time period
What is the difference between individual and market supply?
Individual is the willingness and ability of a single firm to sell products. A market is made up of my sellers. Market supply is the total amount of good all firms are willing and able to supply.
What is the relationship between price and supply?
As supply increases price rises. There is a positive relationship between the price and quantity supplied.
Why do supply curves slope upwards?
Normally producers need a price rise to raise outputs.
How can producers increase the amount they supply to a market?
Firms can increase supply by producing more or releasing stocks
Why hold stocks of finished products?
Stocks are held so firms can meet a surge demand
What causes a movement along the supply curve?
Movement along the supply curve are in response to changes in price.
How is supple affected by a change in the price of a product?
A rise is the price of a product causes an extension in supply
A decrease in the price of a product causes a contraction in supply.
What are some non price factors affecting the supply curve?
Cost of production
Productivity
Improvements in technology
Unexpected events such as disease or bad weather
What are goods in competitive supply?
Alternative products a firm can make with its resources,
