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6 Cards in this Set
- Front
- Back
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What is the definition of supply? |
The quantity of a good or service that a producer is willing and able to sell at a range of prices. |
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What is the law of supply? |
As price increases quantity supplied increases, vice versa, ceteris paribus. |
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What are examples of internal factors? |
Costs of production factor Technology Factor Price of related goods factor |
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What are examples of external factors? |
Environment Factors Legal Factors Political factors Trade Factors |
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If the cost of production decreases what happens to supply? |
Increases, because the producer can afford to make more supply |
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If the price of a related good increases, what happens to supply? |
Supply will increase |
