Supply and Production Concepts

Front

Producer behavior when prices rise

Back

If prices go way up, the producer will produce as much as possible.

Front

Effect of price decrease on production

Back

If the product price goes down, the producer will produce less of that product.

Front

Purpose of a supply schedule

Back

To show the relationship between price and quantity supplied.

Front

Impact of price increase on supply

Back

As price increases, quantity supplied generally increases.

Front

Definition of a supply curve

Back

A supply curve is a graph that shows the quantity supplied at each price.

Front

Graph showing the relationship between price and quantity of gasoline supplied.

Back

The graph illustrates how the quantity of gasoline supplied changes with price.

Front

Cost of production

Back

How much it costs in labor/machinery to make the product.