Economics Chapter 5 - Supply Flashcards

Questions and Answers

What is the definition of supply?

A graph showing various quantities supplied at each price in the market

The amount producers bring to market at any given price

The principle that suppliers will normally offer more for sale at high prices and less at lower prices

The amount of a product that would be offered for sale at all possible prices that could prevail in the market (correct)

What is the law of supply?

The principle that suppliers will normally offer more for sale at high prices and less at lower prices.

What does the supply curve represent?

A graph showing various quantities supplied at each and every price that might prevail in the market.

What is a market supply curve?

The supply curve that shows the quantities offered at various prices by all firms that offer the product for sale in a given market. Signup and view all the answers

Define quantity supplied.

Amount that producers bring to the market at any given price. Signup and view all the answers

What is a change in quantity supplied?

Change in amount offered for sale in response to a change in price. Signup and view all the answers

What is a change in supply?

A situation where suppliers offer different amounts of products for sale at all possible prices in the market. Signup and view all the answers

What is a subsidy?

Government payment to an individual, business, or other group to encourage or protect a certain type of economic activity. Signup and view all the answers

What is supply elasticity?

Measure of the way in which quantity supplied responds to a change in prices. Signup and view all the answers

Define supply schedule.

Listing of the various quantities of a particular product supplied at all possible prices in the market. Signup and view all the answers

Study Notes

Supply Concepts

Supply refers to the total quantity of a product that sellers are willing to offer for sale across various price levels in the market.
Law of Supply indicates that as prices increase, suppliers are inclined to offer more of a good for sale, while a decrease in price results in less being offered.

Visual Representations of Supply

Supply Curve is a graphical representation that shows the quantity of a good that sellers are willing to sell at different price points, typically upward sloping.
Market Supply Curve aggregates the supply curves of all suppliers in a market, illustrating the total quantities offered at varying prices.

Production Metrics

Quantity Supplied refers to the specific amount of a product that producers are willing to sell at a particular price level.
Change in Quantity Supplied describes a shift in the number of units offered for sale directly related to price fluctuations.

Supply Dynamics

Change in Supply entails a scenario where suppliers alter the total amount of product offered at every price point, influenced by factors other than price, such as resources, technology, or regulations.

Economic Support Mechanisms

Subsidy is a financial support provided by the government to incentivize or protect specific economic activities, affecting the overall supply in a market.

Responsive Supply Measurement

Supply Elasticity assesses how the quantity supplied adjusts in response to price changes, indicating the sensitivity of producers to price shifts.
Supply Schedule is a detailed list outlining the quantities of a good supplied at all possible market prices, serving as a tool for analyzing supply behavior.

Description

This quiz focuses on key concepts from Chapter 5, Section 1 of Economics, specifically related to supply. Explore terms like 'supply', 'law of supply', and 'supply curve' to enhance your understanding of market dynamics. Test your knowledge and prepare effectively for your economics exams.