Chapter 9- supply Flashcards
1
Q
supply curve
A
graphical reperesentation of the relationship between quantity supplied and price for all the suppliers in the market
2
Q
Determinants of supply
A
price state of technology cost of production tax entry and exit of firms
3
Q
profit signalling mechanism
A
as products price rises, producers have a greater incentive to supply (more profit). This acts as a signal for entrepreneurs to move resources into this market.
4
Q
Excess demand causes?
A
sellers market
