Law of Supply Flashcard

Front

If the government imposes a tax on a business, the business will most likely

Back

Decrease Supply

Front

The greater opportunity to make profit, the more incentive a company has to figure out how to make a profit.

Back

True

Front

An increase in competition will lead to a ______________.

Back

Increase in Supply

Front

Supply is _________________?

Back

How much a business is able and willing to make for sale to consumers

Front

For businesses, profit serves as _________.

Back

An incentive to supply more of a good.

Front

Besides price, what is one of the most important factors that can affect supply?

Back

The cost of production

Front

If the price for sale of a good falls or decreases then there is more of an incentive to make more of it.

Back

False

Front

The use of new technology will almost always increase the cost to make something.

Back

False

Front

A business that makes a good or service is referred to as ________________.

Back

Producer

Front

The law of supply says:

Back

A producer will supply more as a price of a good increases.