Supply - AP Microeconomics

Change in consumer preferences. Consumer preferences affect demand, not supply decisions.

Change in quantity supplied. Movement along curve due to price changes only.

Can lead to shortages. Maximum prices below equilibrium discourage production.

Increase in supply. More market participants expand total productive capacity.

Supply curve. Input costs directly affect production profitability decisions.

Time period for adjustment. Longer adjustment periods allow greater supply response.

Percentage change in quantity supplied equals percentage change in price. Elasticity coefficient equals one in this balanced case.

Current supply decreases. Producers withhold current supply hoping for higher future profits.

Supply decreases. Fewer producers means reduced total market capacity.

Perfectly inelastic supply. Fixed quantity regardless of price level changes.

Current supply increases. Producers rush to sell before prices drop further.

Surplus in the market. Minimum prices above equilibrium create excess supply.

Supply curve. Technology improvements shift the entire supply relationship.

Infinite response to price change. Any price change causes infinite quantity adjustment.

Quantity supplied does not change with price. Supply remains constant regardless of price changes.

Increased supply. Better efficiency reduces costs and increases output capacity.

Increases supply. Innovation reduces costs and improves production efficiency.

As price increases, quantity supplied increases; vice versa. This describes the fundamental positive relationship in supply theory.

$Q_s = f(P)$ where $P$ is price and $Q_s$ is quantity supplied. Basic functional notation showing supply as dependent on price.

Production technology. Better technology reduces costs and increases productive capacity.

Supply increases. Lower costs make production more profitable, encouraging higher output.

An increase in supply. Rightward movement means more quantity supplied at each price level.

Change in consumer preferences. Consumer preferences affect demand, not supply decisions.

Decreases supply. Higher input costs reduce profitability and discourage production.

Decreases supply. Taxes increase production costs, reducing supply incentives.

Upward sloping. Reflects the positive relationship between price and quantity supplied.

A decrease in supply. Leftward movement means less quantity supplied at each price level.

Sum of all individual supplies in a market. Horizontal addition of all individual firm supply curves.

Supply increases. More producers means greater total market capacity.