Economics 1 Marks Each

Rare goods and perishable goods.

Rare articles do not have any current production. Hence…..

Positive slope.

A schedule is a data table that shows a seller’s willingness to sell a good at various prices and is called the supply schedule.

The quantity of production which a producer is able and willing to sell in the market at a given price and at a particular point of time is called supply.

On price and factors other than price.

The total available quantity of goods with a producer which can be offered for sale in the market as per the ability and willingness of the seller is called stock.

Supply can be greater than present production. Supply depends on stock. It includes present and past production both. Therefore supply can be greater than present production.

Prof. Altered Marshall explain the price determination process with the help of scissors.

All individual supply curves are positively sloped but their proportion of slopes are different.

The slope of the supply curve is positive.

The decrease in demand shifts the supply curve leftward. It is parallel to original supply Curve.

An increase in demand shifts the supply curve rightward. It is parallel to original supply curve.

If the price of the good is constant. the decrease in supply due to other factors than price is called decrease in supply.

If the price of good is constant, the increase in supply due to other factors than price is called decrease in supply.

If other things are constant, the fall in supply due to decrease in price is known as contraction of supply.

If other things are constant, the rise in supply due to decrease in price is known as expansion of supply.

The increases in price raise the profit of the firm and includes other firm to enter into the market. Therefore there is positive relationship between price and supply.

The slope or the supply curve is positive because there is direct relationship between price and supply.

Stock is the total amount of goods or commodity which is available for sale.

Market supply is the summation of all individual supply schedules.

When the storage of production is not possible and goods are perishable, production, stock and supply are same.

Market price can be equilibrium and disequilibrium. Equilibrium market price is established when demand and supply of the good is same in the market. This price remains for the long run.

When the market price of the good is greater than the equilibrium price of the goods it creates surplus of the good. It again creates competition among the firms to sell their goods in the market. This process the price of the goods until it reaches the equilibrium level.

Equilibrium market price will remain stable in the long run.

The equilibrium market price is the price where the demand and supply of goods are same.

Demand and Supply decides the price of goods and services.

The process of determination of price of goods and services in the market is called market price determination.

The concept of individual supply curve is important to study the behaviour of the firm.

The concept of market supply is important to explain the theories of economics.

Prices of inputs, Level of inputs, Level of technology, Prices of relative goods, Rumours about the future prices, Production cost, Government policy, Transportation, Number of firms and Goals of the firm, Interest rate etc. affect the supply.

Individual and market supply curve is positively sloped.

The change in factors other than price is the reason of increase and decrease in supply.

The change in price is the reason for expansion and contraction of supply.

A contraction of the supply shifts the point downward on the same supply curve.

An expansion of the supply shifts the point upward on the same supply curve.

In economics individual supply is the willingness to sell the product at different prices by the seller or firm.

Supply means the willingness to sell the stock at prevailing price whereas stock includes the total production.

Production is the amount of goods created by the available functions of production during a fixed time period.

Supply curve is created from the supply schedule.

All factors remaining constant, an increase in price raises the supply and a decrease in price reduces the supply. There is direct relationship between price and supply.

Supply function is a mathematical representation of the relationship of supply of a goods with its determinants.