Supply

Question 1

Definition of Suppy:

Answer 1

The willingness/ability for sellers to sell a good/service

Question 2

Law of Supply:

Answer 2

Price and quantity supplied have a positive relationship

Question 3

Change in Quantity supplied

Answer 3

• Movement along the supply curve
• Caused by a change in price

Question 4

Change in Supply

Answer 4

• Shift of the supply curve
• Caused by a change in a non-price factor

Question 5

The non-price factors of supply (6):

Answer 5

1. Taxes and subsidies
2. Weather and Natural Disasters
3. Production costs
4. Technology
5. Prices of substitute goods
6. Availability of factors of production

Question 6

Definition of Competitive Supply:

Answer 6

When the supply of 2 different goods compete for the same FOP during their production

Question 7

Definition of Joint supply:

Answer 7

When a good is automatically produced if another good is produced

Question 8

Extension in supply

Answer 8

An increase in the quantity supplied of a product caused by an increase in its price

Question 9

Contraction in supply

Answer 9

A fall in the quantity supplied of a product caused by a decrease in price