EC2 Lesson 2.2: Supply

Question 1

It is the relationship between price and quantity supplied

Answer 1

Supply

Question 2

It is the quantity of goods and services that the sellers are willing and able to sell or produce

Answer 2

Supply

Question 3

It has positive relationship with price.

Answer 3

Supply

Question 4

It states that “All other things remaining constant, price and quantity supplied are directly proportional.” There is a positive relationship between price and quantity supplied.

Answer 4

Law of Supply

Question 5

All other things remaining constant

Answer 5

Ceteris paribus

Question 6

It is tabular presentation of supply showing the price and quantity supplied of a particular good.

Answer 6

Supply Schedule

Question 7

It is the graphical presentation of the supply schedule

Answer 7

Supply Curve

Question 8

__________ is upward sloping to the right showing a direct relationship between price and quantity supplied. Therefore, when price increases in the Y axis, its quantity supplied also increases in the X axis.

Answer 8

Supply curve

Question 9

Changes in Supply brought by Price Factors

Answer 9

• Movement along the Supply Curve/Change in Quantity Supplied
• Shift of the Supply curve/change in supply

Question 10

This only occur when the price of the commodity changes.

Answer 10

Movement along the Supply Curve/Change in Quantity Supplied

Question 11

Changes in Supply brought about by Non-Price Factors

Answer 11

Shift of the Supply Curve/Change in Supply

Question 12

non-price factors that affect the supply curve.

Answer 12

1. Subsidies and Taxes/Government action
2. Technology
3. Other goods
4. Number of sellers
5. Expectation
6. Cost of Production

Question 13

This refers to the power of the government to intervene in the market that will affect the supply.

Answer 13

Subsidies, Taxes/Government Action.

Question 14

Some of the government actions are the?

Answer 14

subsidies, taxes and regulation

Question 15

incentive given by the government to motivate the producer to provide more products in the market.

Answer 15

Subsidies

Question 16

If government imposes _____, then the supply for commodity will increase and supply curve shift to the right.

Answer 16

subsidies

Question 17

power of the government to impose a certain percentage to persons and property. It is said that it is universal because the state can impose this. It should be paid compulsory

Answer 17

taxes

Question 18

If the government imposes higher tax to certain product or business, the seller and producer are less likely to sell or produce the product therefore supply curve will shift to the____

Answer 18

left

Question 19

power of the government to impose some rules to control some political, administrative and economic activity done within the vicinity of the state. (ex. permits and ordinance before putting up a business)

Answer 19

Regulations

Question 20

Increasing the control of regulation, or its strict implementation, the less likely the firms want to enter or to produce a commodity. In this case, supply curve will shift to the ___

Answer 20

left

Question 21

refers to the machine, methods and processes to improve the production of the firm which leads to productivity.

Answer 21

technology

Question 22

With the use of high _____, the producers are more motivated to produce and this will cause an increase of supply.

Answer 22

technology

Question 23

an ______ does not motivated a producer to produce which will lead to a decrease in the supply of a particular good.

Answer 23

outmoded technology

Question 24

If the producers noticed that producing other goods will give them more profit, therefore the supply for the goods they produce at present will decline

Answer 24

Other Goods

Question 25

This refers to the **number of sellers in the industry.**

Answer 25

number of sellers

Question 26

refers to a group of firms selling the same product.

Answer 26

industry

Question 27

refers to all firms producing the product

Answer 27

supply

Question 28

If the **number of firms increases**, then **more goods will be produced** at each price and supply will ______ and supply curve will shift to the ____

Answer 28

increase, right

Question 29

A **decline in the number of firm** would shift the supply curve to the ____

Answer 29

left

Question 30

This is the **anticipation of the firms about the price of commodity they are selling**. If firms expect that the price of goods they produce will increase in the future, then they will hold off selling at least part of the production until the price rises.

Answer 30

expectation

Question 31

Expectation of **future price increases** tends to _____ the supply.

Answer 31

reduce

Question 32

expectation of **future price decreases** tends to _____ supply.

Answer 32

increase

Question 33

This refers to the **expenses incurred in the production**

Answer 33

Cost of production

Question 34

If the price of raw materials and other factors of production needed to produce a certain **product is expensive**, the supply of that good will _______

Answer 34

decrease

Question 35

if the **cost of production is lesser**, supply of the goods will _______

Answer 35

increase

Question 36

this means that all forces in the **market are in the balance.**

Answer 36

equilibrium

Question 37

It is the point in the graph where the demand and supply meet or quantity demanded is equal to quantity supplied (Qd = Qs).

Answer 37

Market equilibrium

Question 38

Market equilibrium has two points:

Answer 38

equilibrium price equilibrium quantity.

Question 39

It is the price at which **quantity demand is equal to quantity supplied.**

Answer 39

Equilibrium Price (P*)

Question 40

It is the **quantity where demand and supply are equal**. Equilibrium is difficult to attain in the market due to disturbances.

Answer 40

Equilibrium Quantity (Q*)

Question 41

The situation where **demand is greater than supply**

Answer 41

shortage

Question 42

When shortage is experienced in the market, price of that good will ________

Answer 42

increase

Question 43

Between price and quantity, _______ has more control to the price than the quantity.

Answer 43

government

Question 44

The government may set the______ or ______

Answer 44

price floor or price ceiling.

Question 45

It is the **minimum price set by the government** in which the commodity can be purchased.

Answer 45

Price Floor

Question 46

It is the **maximum price set by the government** in which the commodity can be purchased.

Answer 46

Price Ceiling

Question 47

As the demand **increases**, the equilibrium point (P* and Q*) _______

Answer 47

also increases

Question 48

As the demand **decreases** the equilibrium point (P* and Q*) ________

Answer 48

also decreases

Question 49

As the supply increases, the equilibrium quantity increases while the equilibrium price ______

Answer 49

decreases