Supply

Question 1

What is the definition of Supply?

Answer 1

The quantity of a good or service the producer is both willing and able to produce at any given time at any given price range.

Question 2

What is the definition of a Supply Schedule?

Answer 2

A table that sets out the quantity of a good or service the producer that is willing and able to produce at a given time at any given price range.

Question 3

What is the definition of a supply graph?

Answer 3

A graph that sets out the quantity of a good or service the producer that is willing and able to produce at a given time at any given price range.

Question 4

What is the law of Supply?

Answer 4

As the price of a good or service increases the quantity supplied will increase (or vice versa), assuming ceterius paribus.

Question 5

What does the term wiling and able mean?

Answer 5

Willing= the producer wants to produce it to maximise his profit.

Able= the producer does not have enough resources to produce more i.e land, labour, capital & entrepreneurship.