Topic 2 (supply)

What is the definition of supply

Supply is the amount of a good/service that a producer is willing and able to provide at a given price in a given Time period

What is the law of supply

When there is an increase in price there is an increase in quantity supplied, demonstrating the positive relationship between price

and quantity supplied.

This is because of the profit incentive to firms

Explain the shape of a supply curve [4]

The supply curve is upward sloping as there is a positive relationship between price and quantity. As the price of a good/service increases, the quantity supplied will also increase

What does a supply curve look like

What is the only factors that will cause a movement along a

supply curve?

If price changes this will cause an

extension or contraction along the supply curve

______________________________________ if anything else changes

then the supply curve will shift to the right or to the left

What is an extension curve for a supply curve Look like and an explanation

What is an contraction curve for a supply curve Look like and an explanation