Podcast
Questions and Answers
What effect does a decrease in input costs have on supply?
What effect does a decrease in input costs have on supply?
Which of the following will lead to a rightward shift in the supply curve?
Which of the following will lead to a rightward shift in the supply curve?
How do higher profits affect production levels, according to the law of supply?
How do higher profits affect production levels, according to the law of supply?
What happens to supply when producers expect prices to rise?
What happens to supply when producers expect prices to rise?
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Which of the following factors would NOT typically shift the supply curve?
Which of the following factors would NOT typically shift the supply curve?
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What is the primary motivator behind the production of goods?
What is the primary motivator behind the production of goods?
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What is the relationship between price and the quantity of goods supplied?
What is the relationship between price and the quantity of goods supplied?
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Which of these factors is NOT considered when creating a supply schedule?
Which of these factors is NOT considered when creating a supply schedule?
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What does ceteris paribus mean in the context of supply?
What does ceteris paribus mean in the context of supply?
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If the price of a box of Gobstoppers increases from $1.50 to $2.00, how does the quantity supplied likely change?
If the price of a box of Gobstoppers increases from $1.50 to $2.00, how does the quantity supplied likely change?
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Flashcards
Supply Shift Direction
Supply Shift Direction
An increase in supply shifts the curve to the right, while a decrease shifts it to the left.
Determinants of Supply
Determinants of Supply
Factors that cause the supply curve to shift, like input costs, profits, and technology.
Input Costs
Input Costs
Materials needed for production; lower costs increase supply, while higher costs decrease it.
Law of Supply
Law of Supply
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Government Regulations
Government Regulations
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Supply
Supply
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Quantity Supplied
Quantity Supplied
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Ceteris Paribus
Ceteris Paribus
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Supply Curve
Supply Curve
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Study Notes
Supply
- Supply is the amount of a good or service available.
- As the price increases, the quantity produced also increases. Conversely, as price decreases, the quantity produced decreases.
- This is known as the Law of Supply
- Profit is the motive for production
- Firms entering or exiting production impacts supply levels.
- Firms changing production in the market impacts supply levels, and this is the Law of Supply.
Supply Schedule
- Compares variables such as price and quantity supplied.
- Only considers price, not other possibilities. All other variables remain constant (ceteris paribus).
- Variables include price and quantity supplied.
Market Supply Schedule
- Shows the quantity supplied at different prices.
- Example: At $1.00, the quantity supplied is 100. At $1.50, the quantity supplied is 150, and so on.
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Description
Explore the fundamental concepts of supply in this quiz, including the Law of Supply and how various factors affect production levels. Understand the supply schedule and market supply schedule through practical examples to solidify your knowledge in economics.
