Supply

Question 1

Elasitc PES

Answer 1

1-infifnty

Question 2

Inelastic PES

Answer 2

0-0.99

Question 3

Unitary elastic supply

Answer 3

Only elastic at the PES of 1

Question 4

Unitary elastic supply

Answer 4

must start from the origin

Question 5

Factors influencing PES

Answer 5

• Spare capacity
• state of the economy
• time period
• factors of production
• perishability

Question 6

Spare capacity

Answer 6

capacity for production which isnt used

Question 7

Spare capacity on elasticity

Answer 7

low spare capacity makes more inelastic supply

Question 8

lots of spare capacity impact on PES

Answer 8

elastic

Question 9

Not lots of spare capacity impact on PES

Answer 9

inelastic

Question 10

availability of FOP Def

Answer 10

how easy it is to find the macros of production for a good

Question 11

Elasticity of availability of FOP

Answer 11

more specialised fop leads to avalibility of fop

fop more inelastic

Question 12

Supply

Answer 12

When a firms is willing and able to sell a good

Question 13

Why do supply curves slope upward

Answer 13

Because the quantity supplied increases as price increases because at a higher price more firms are willing to supply

Question 14

assumptions of supply curve

Answer 14

firms what to maximise prefer

Question 15

why is the supply curve continually increasing

Answer 15

supply curve only considers the willingness of a firm to supply a good

Question 16

What does the supply curve say about why prices increase

Answer 16

nothing

only tells us what would happen if the price increased

Question 17

Extension

Answer 17

shift up a curve

Question 18

Contraction

Answer 18

shift down a curve

Question 19

price elasticity of supply

Answer 19

measure the responsiveness of OS to a change in price

Question 20

EQ PED

Answer 20

%change in QD //// % change in Pricw

Question 21

PES Eq

Answer 21

%change in QS // %change in price

Question 22

All PES have what in common

Answer 22

they are all positive

Question 23

All PED are positive or negative or both

Answer 23

negative

Question 24

All XED or YED can be + or -

Answer 24

+ or -

Question 25

Impact on bad state of economy on supply of a good

Answer 25

Elastic supply

Question 26

Impact on good state of economy on supply of a good

Answer 26

inelastic more factors of production are employed

Question 27

How is elasticity of supply affeted by perishability

Answer 27

A perishable good can not easily be stockpiled and so a change in supply takes longer than a good which isnt perishable

Question 28

How does time affect elasticity

Answer 28

In the short run FOP are fixed and so more elastic production however as factors aren't fixed in the long run supply is less elastic

Question 29

Factors affecting price elasticity of supply

Answer 29

- spare capacity - availability of FOP - state of the economy - stockpiles and perishables - time period

Question 30

TEASS

Answer 30

Time Economy Avalability Stockpiles Spare capacity

Question 31

Acronym for factors affecting Price elasticity of supply

Answer 31

TEASS

Question 32

PES of 0 is what

Answer 32

Perfectly elastic supply

Question 33

PES of infinity is what

Answer 33

perfectly elastic supply

Question 34

Technology as a shift in supply

Answer 34

More advanced technology leads to an increase in supply and a shift left

Question 35

what causes an increase in supply

Answer 35

new left or right supply curve any factor bar price

Question 36

Conditions of supply

Answer 36

Cost Weather Productivity Technology Supplies

Question 37

Division of labour

Answer 37

when workers specialise on one task in the production line