2.2 Supply

• What does the term "supply" refer to in economics?

  Quantity producers sell
• The law of supply states that as the price of a good or service increases, the quantity supplied also increases
• Arrange the factors affecting supply from most direct to least direct:

  1️⃣ Cost of production

  2️⃣ Availability of resources

  3️⃣ Technology

  4️⃣ Number of sellers

  5️⃣ Government regulations

  6️⃣ Expectations about future prices
• A change in supply refers to a movement along the supply curve.

  False
• What is "market supply"?

  Total supply in market
• What is the role of technology in affecting supply?

  Improves efficiency
• The law of supply assumes all factors other than price remain constant.
• What does the supply curve represent graphically?

  Supply schedule
• Match the factor affecting supply with its description:

  Cost of production ↔️ Expenses in producing goods

  Availability of resources ↔️ Access to raw materials

  Government regulations ↔️ Policies impacting production
• What is the effect of higher production costs on supply?

  Higher costs decrease supply
• The law of supply states that as the price of a good or service increases, the quantity supplied also increases.
• Supply refers to the quantity of a good or service that producers are willing and able to sell at various prices during a specified time period.
• How does technology affect supply?

  Improves efficiency, increases supply
• Arrange the following price-quantity relationships according to the law of supply:

  1️⃣ Lower price, smaller quantity supplied

  2️⃣ Higher price, larger quantity supplied
• Match the concepts with their descriptions:

  Supply curve ↔️ Graphical representation of the supply schedule

  Supply schedule ↔️ Table showing quantities producers sell at different prices
• What is the effect of government regulations on supply?

  Can increase or decrease supply
• Expectations about future prices can influence current supply decisions.
• A change in price causes a change in quantity supplied, while a change in other factors causes a change in supply.
• Match the factors influencing market supply with their descriptions:

  Cost of production ↔️ Expenses affecting profitability and supply

  Number of sellers ↔️ More firms increase total supply

  Government policies ↔️ Regulations or subsidies affecting supply
• What is the primary factor influencing supply according to the law of supply?

  Price
• The law of supply can be expressed mathematically as Q_{s} = f(P)</latex>.
• The law of supply contrasts with the law of demand, which states that higher prices reduce demand.
• What happens to the quantity supplied when the price of a good or service increases, assuming all other factors remain constant?

  Quantity supplied increases
• The law of supply states that higher prices reduce demand
• What does $Q_{s}$ represent in the law of supply equation $Q_{s} =$$f(P)$?


  Quantity supplied
• The supply curve is a graphical representation of the supply schedule
• Match the component of the supply curve with its description:

  Price ↔️ The amount consumers pay

  Quantity Supplied ↔️ The amount producers offer
• According to the law of supply, the supply curve is upward sloping.
• What is the quantity supplied when the price is $3 according to the supply schedule?

  30
• The supply equation Q_{s} =10P</latex> shows a direct proportionality between price and quantity supplied
• The supply curve shifts leftward if production costs increase.
• What happens to the supply of a good if the cost of raw materials to produce it increases?

  Supply decreases
• Technological advancements that improve efficiency can reduce production costs
• What is the main difference between a change in supply and a change in quantity supplied?

  Curve shift vs movement
• Market supply is the sum of all individual producer supply curves in the market.
• What is the quantity supplied at a price of $10 according to the market supply equation $Q_{s} =$$500 +$$70P$?


  1200
• If the cost of raw materials to produce coffee beans increases, the supply of coffee will decrease
• What happens to the supply of wheat if new harvesting technology is introduced?

  Supply increases
• Match the factor affecting supply with its effect on the supply curve:

  Increased Production Costs ↔️ Leftward shift

  Technological Advancement ↔️ Rightward shift