Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Supply
| Question | Answer |
|---|---|
| Supply | refers to the quantity of a good that firms are willing to make available at various prices over a particular period of time. |
| Individual supply | refers to the quantity of a good an individual firm is willing to supply at different prices. |
| Market/aggregate supply | refers to the total quantity of a good that all the firms are willing to supply at different prices. |
| A supply schedule | is a table illustrating the different quantities of a good made available for sale at various market prices at any given time. |
| An individual supply schedule | is a table illustrating the different quantities of a good made available for sale by an individual firm at various market prices at any given time. |
| A market/aggregate supply schedule | is a table illustrating the total quantities of a good that all the firms in the market are willing to make available for sale at various prices at any given time. |
| A supply curve | is a graph illustrating the number of units of a good made available for sale at various market prices at any given time. There is a positive relationship between price and quantity supplied. The supply curve is usually upward sloping left to right. |
| An individual supply curve | is a graph illustrating the different quantities of a good made available for sale by an individual form at various market prices at any given time. |
| A market/aggregate supply curve | is a graph illustrating the total quantities of a good all the firms in the market are willing to make available for sale at various prices at any given time. |
| To derive market supply | we add the quantity supplied by each individual firm at each price to calculate the overall quantity supplied to the market at each price. |
| Other circumstance of Supply | Supply restricted by a minimum market price, Supply restricted by limited capacity,Fixed supply (Perfectly inelastic supply). |
| A movement along the supply curve is caused by | a change in price of the good or service. |
| A shift in the supply curve is caused by | a change in any non-determinant of supply (any other variable that influences the quantity supplied). |
| Increase in supply | indicated by a shift to the right. |
| Decrease in supply | indicated by a shift to the left. |
| Factors affecting the supply of a good | It's own price, Price of related goods,Cost of production, Factors outside the control of a firm/unforeseen circumstances, State of technology, Rates of taxation/granting of subsidies,Objectives of the firm,Number of sellers in the industry. |
| Supply function | Sy = f(Py, Pr, C, U, Tch, Tx, O, N) |
| Py | Price of good Y. |
| Pr | Price of related goods. |
| C | Cost of production. |
| U | Factors outside the control of the firm. |
| Tch | State of technology. |
| Tx | Taxation/subsidy. |
| O | Objectives of the firm. |
| N | Number of firms in the industry. |
| Producer surplus | is the difference between the lowest price a supplier is willing to accept for a good and the price they actually receive. |
| Jean Baptise Say (1767-1832) | Says law-'Supply creates it's own demand' |
| Says law-'Supply creates it's own demand' | People work to acquire needs/wants,Specialisation of labour,Production creates demand,Savings decrease interest rates,Self-adjusting system. |
| Says analysis failed to explain | how a deficiency in aggregate demand could cause unemployment. |
Created by:
deborahh
Popular Economics sets