Supply Flashcards
(5 cards)
1
Q
definition of supply
A
the quantity of a goods or service that producers are both willing and able to produce at a given price over a period of time
2
Q
definition of a supply table
A
A table that sets out the quantity of a goods or service that producers are both willing and able to produce at a given price over a period of time
3
Q
definition of a supply graph
A
a graph that sets out the quantity of a goods or service that producers are both willing and able to produce at a given price over a period of time
4
Q
What is the law of supply
A
as the price of a good or service increases the quantity supplied will increase ( or vice verser) assuming ceterbis paribus
5
Q
What does the term willing and able mean?
A
Willing= the producer wants to produce it to maximise his profit. Able= the producer have enough resources to produce more i.e. land, labour, capital and entrepreneurship
