Supply – Meaning, Schedules, Curves, Laws - SS1 Economics Past Questions and Answers - page 1
What is supply?
The amount of a good or service that consumers are willing and able to buy
The amount of a good or service that producers are willing and able to sell
The total amount of a good or service in a market
The relationship between price and demand for a good or service
What are supply schedules?
Graphical representations of the relationship between price and quantity supplied
Tables that show the quantity of a good or service that consumers are willing to buy at different prices
Tables that show the quantity of a good or service that producers are willing to sell at different prices
None of the above
What are supply curves?
Tables that show the quantity of a good or service that producers are willing to sell at different prices
Graphical representations of the relationship between price and quantity supplied
Graphical representations of the relationship between price and demand
None of the above
What is the law of supply?
As the price of a good or service increases, the quantity supplied by producers decreases
As the price of a good or service decreases, the quantity supplied by producers increases
As the price of a good or service increases, the quantity supplied by producers also increases
There is no relationship between price and quantity supplied
Define the concepts of supply below:
i. definition
ii. schedule
iii. curve
iv. law
i. Supply is the amount of a good or service that producers are willing and able to sell at different prices in a given market. It reflects the relationship between the price of a good and the quantity supplied by producers.
ii. Supply schedules are tables that show the quantity of a good or service that producers are willing to supply at different prices, holding all else constant. They provide a snapshot of the supply of a good or service in a particular market.
iii. Supply curves are graphical representations of supply schedules, which show the relationship between the price of a good and the quantity supplied by producers. They are upward-sloping, indicating that producers are willing to supply more of a good or service at higher prices.
iv. The law of supply states that as the price of a good or service increases, the quantity supplied by producers also increases, ceteris paribus. This means that there is a positive relationship between price and quantity supplied.