Supply And The Supply Curve Flashcards
1
Q
Supply definition
A
The quantity of a good or service producers are willing and able to produce at a given price in a given time period
2
Q
What is the Law of supply
A
There is a direct relationship between price and quantity supplied
3
Q
As price increases what happens to the quantity supplied
A
Increases
4
Q
As price decreases what happens to the quantity supplied
A
Decreases
5
Q
Why do firms supply more when price rises
A
The profit motive
6
Q
What non price factors can influence supply
A
Productivity
Indirect tax
Number of firms
Technology
Subsidy
Weather
Costs of production
