2.1.2 Supply

• Supply is defined as the quantity of a good or service producers are ready to offer for sale in the market
• What is one factor that affects the willingness to sell goods or services?

  Price
• Match the type of supply with its key influencing factors:

  Individual Supply ↔️ Cost of production, technology, expectations

  Market Supply ↔️ Number of suppliers, government policies
• Improvements in technology increase the quantity supplied
• Steps involved in how changes in supply factors affect the market:

  1️⃣ A change occurs in a supply factor (e.g., cost of production)

  2️⃣ The supply curve shifts

  3️⃣ The market price and quantity adjust
• What are the primary factors that influence individual supply?

  Cost of production, technology, producer's expectations
• Which factors influence market supply in addition to those affecting individual supply?

  Number of suppliers, government policies
• What is the relationship between price and quantity supplied according to the law of supply?

  Positive relationship
• Changes in technology can shift the supply curve to the right.


  True
• What does the supply curve illustrate graphically?

  Price and quantity supplied relationship
• Elasticity of supply measures the responsiveness of quantity supplied to changes in price.


  True
• Arrange the elasticity of supply from least elastic to most elastic based on time period:

  1️⃣ Immediate response ||| Short-run

  2️⃣ Long-run
• Supply is measured over a specific period, such as a week or a month.


  True
• Supply is measured over a specific time frame, such as a week or a month.


  True
• Improvements in technology lead to an increase in the quantity supplied
• Subsidies provided by the government can increase the quantity supplied.


  True
• Individual supply depends on factors like cost of production, technology, and the producer's expectations
• The law of supply states that price and quantity supplied have a positive relationship.

  True
• Summarize the relationship between price and quantity supplied according to the law of supply:

  1️⃣ Price increases

  2️⃣ Quantity supplied increases

  3️⃣ Price decreases

  4️⃣ Quantity supplied decreases
• A supply curve slopes upward from left to right, illustrating the law of supply
• Match the factor affecting elasticity with its effect:

  Time period ↔️ Long-run supply is more elastic

  Availability of resources ↔️ Abundant resources increase elasticity

  Possibility of substitution ↔️ Easy substitution increases elasticity
• An increase in the number of suppliers shifts the supply curve to the right.


  True
• The relationship between price and quantity supplied is that the amount supplied decreases as the price rises.

  False
• Higher costs of production lead to a lower quantity supplied
• Supply is measured over a specific time frame, such as a week or a month.


  True
• What is one government policy that can affect supply?

  Subsidies
• Match the type of supply with its definition:

  Individual Supply ↔️ Quantity offered by a single producer

  Market Supply ↔️ Total quantity offered by all producers
• Market supply is the total quantity of a good or service all producers are willing and able to offer for sale at different prices
• The law of supply states that the quantity supplied of a good or service decreases as its price increases.

  False
• Lower prices reduce the incentive for producers to supply the good or service
• What does a supply schedule show?

  Quantity producers supply at different prices
• Match the price per orange with the quantity supplied:

  $0.50 < item1_{e}nd > < item2_{s}tart > 100 < item2_{e}nd > < pair_{e}nd > < pair_{s}tart > < item1_{s}tart >$1.00 ↔️ 200

  $1.50 < item1_{e}nd > < item2_{s}tart > 300 < item2_{e}nd > < pair_{e}nd > < pair_{s}tart > < item1_{s}tart >$2.00 ↔️ 400
• To plot the supply curve, price is on the vertical axis and quantity is on the horizontal
• What are the key factors affecting elasticity of supply?

  Time period, resources, substitution
• What two conditions must producers have to supply goods or services?

  Willingness and ability to sell
• The relationship between price and quantity supplied is that the amount supplied increases as the price
• Match the key phrases with their explanations:

  Supply ↔️ Quantity producers are ready to offer for sale

  Willingness to sell ↔️ Producers are prepared to supply at a certain price

  Ability to sell ↔️ Producers have resources and capacity

  Price and quantity relationship ↔️ Supply increases as price rises
• More suppliers in the market lead to a higher total quantity supplied.


  True
• Match the type of supply with its definition:

  Individual supply ↔️ Quantity offered by a single producer

  Market supply ↔️ Total quantity offered by all producers
• As the number of suppliers increases, the market supply curve shifts to the right.


  True