Producer surplus and supply 3.0 / 5 based on 1 rating ? EconomicsMacroeconomic indicatorsASOCR Created by: JadeCreated on: 21-11-12 15:39 What is supply? The quantity of a product that producers are willing and able to provide at different market prices over a period of time. 1 of 10 What is profit? The difference between total revenue of a producer and total cost. 2 of 10 Economics assumes that the behaviour of suppliers is governed by the consistent need to? Maximise profits 3 of 10 There is a greater willingness to increase quantity supplied when there is a rise in prices. Why? This is because firms are likely to be making greater profit 4 of 10 The relationship between price and quantity supplied is ? Positive 5 of 10 What is producer surplus? The difference between the price a producer is willing to accept and what they actually recieve 6 of 10 A fall in price _______ producer surplus Reduces 7 of 10 A rise in price ______ producer surplus Increases 8 of 10 An increase in supply leads to a ______ in producer surplus Increase 9 of 10 An increase in demand leads to a _________ in producer surplus Increase 10 of 10
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