Supply

Question 1

What is Joint Supply?

Answer 1

Two or more goods that derive from a single production process

A change in the supply of one good leads to a change in the supply of a by-product

Question 2

What is Individual Supply?

Answer 2

A producer’s supply of a good/service

Question 3

What is Market Supply?

Answer 3

All producers’ supplies to the market summed together

Question 4

What is the Law of Supply?

Answer 4

As price falls, the quantity supplied increases and vice versa

Supply slopes upwards to the
right

Question 5

What are Factors that cause a Shift in Supply?

Answer 5

• Change in the costs of
production (raw materials,
wages, energy….)

• Change in production
technology

• Change in weather/climate

• Events such as strikes,
pandemic

• Changes in indirect taxes

• Changes in producer subsidies

• Changes in the price of
substitutes in production

• Changes in the number of firms
supplying to the market