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WorksheetsTHEORY OF SUPPLY AND ELASTICITY OF SUPPLY
Total questions: 20
Worksheet time: 28mins
When producers offer fewer products for sale at the same prices
Supply curve shifts right
Supply curve shifts left
They expect subsidies
The price per unit has decrease
Suppliers will normally offer more for sale at high prices and less for sale at lower prices
Quantity supplied
Law of Supply
total production
short run
Price elasticity of supply is the responsiveness of
demand to a change in price.
price to a change in supply.
quantity supplied to a change in price.
price to a change in supply.
If the supply curve of a product is vertical, PES is equal to
0.
1.
-1.
infinity.
If storage of a good is cheap and readily available, supply is likely to be
relatively elastic.
relatively inelastic.
perfectly inelastic.
perfectly elastic.
Identify the correct determinant of supply.
Example: If the government requires factories to reduce pollution, complying will initially increase costs of production in the market and reduce supply.
Government regulation
Cost of resources
Worker productivity/motivation
Change in technology
This table shows the various quantities offered for sale or supplied at different prices
Supply function
Supply schedule
Supply curve
If the goal of the firm is to maximise profit, quantity supplied at a high price will be
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