Economics- Law of Supply – Flashcards
Unlock all answers in this set
Unlock answersquestion
supply
answer
a schedule or curve showing the various amounts of a product that producers are willing and able to male available for sale at each of a series of possible prices during a specified period
question
law of supply
answer
the principle that, other things equal, an increase in the price of a product will increase the quantity of it supplied, and conversely for a price decrease; directly related
question
supply determinants
answer
resource prices, technology, taxes and subsidies, prices of other goods, producer expectations, and the number of sellers in the market
question
change in supply
answer
a change in the quantity supplied of a good or service at every price; a shift of the supply curve to the left or right
question
change in quantity supplied
answer
a change in the amount if a product that producers offer for sale because of a change in the product's price
question
PRENTT
answer
acronym for supply determinants
question
resource prices
answer
these are effected by the factors of production
question
technology
answer
more productivity because of this equals more output
question
taxes
answer
increase in this equals less profit, decrease in thi equals more profit
question
subsidies
answer
government helps fund the costs producers
question
prices of other goods
answer
if a company produces 2 products, and one has an increase in demad, then the price for that products increases and the quantity supply increases, therefore, the supply of the other product decreases
question
expectations
answer
when companies think something will sell more, they produce more of the product
question
number of sellers
answer
when more firms enter the market; more suppliers equals more supply, less suppliers equals less supply
