Question

5. Supply: Basic concepts Complete the following table by selecting the term that matches each definition. Definition Quantity Supplied Supply Curve Supply Schedule Law of Supply A graphical object showing the relationship between the price of a good and the amount that sellers are willing and able to supply at various prices The claim that, other things being equal, the quantity supplied of a good increases when the price of that good rises A table showing the relationship between the price of a good and the amount of it that sellers are willing and able to supply at various prices The amount of a good that sellers are willing and able to supply at a given price Apply your understanding of the previous key terms by completing the following scenario with the appropriate terminology. Your coworker Eleanor is really concerned about a project that she has just been assigned. She is in charge of analyzing and determining conditions in the market for televisions from an extensive sales report. If Eleanor's boss is interested in a graphical presentation of the relationship between the price and quantity of televisions supplied, you would advise your coworker to construct using the data provided. However, if Eleanor's boss is more interested in the detailed numbers used to construct this visual representation, you would instead advise your coworker that a would be more appropriate.

Answer 1

Supply Curve - A graphical object showing the relationship between the price of a good and the amount that sellers are willing and able to supply at various prices.

Law of Supply - The claim that, other things being equal, the quantity supplied of a good increases when the price of that good rises.

Supply Schedule - A table showing the relationship between the price of a good and the amount of it that sellers are willing and able to supply at various prices.

Quantity Supplied - The amount of a good that sellers are willing and able to supply at a given price.

Eleanor's boss is interested in Supply Curve when he asks for graphical presentation of the relationship between price and quantity supplied.

Eleanor's boss is interested in Supply Schedule when he asks for detained numbers used to construct visual representation.