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Supply (Definitions (Law of Supply (There is a positive casual…
Supply
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Definitions
Law of Supply
There is a positive casual relationship between the Price and Quantity of a good supplied. The higher the price the higher the quantity supplied
Supply
The quantity of a good that suppliers are willing and able to produce and sell over various prices aver a period of time. Ceteris Paribus
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Movement
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If P increases, Quantity increases and there is an upward movement
Upward sloping?
Thr price of the goods determines the revenue of the firm.
As the price increases, revenue increases thus, production of the good becomes more profitable.
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Firms are better able to cover the high costs of production that arise when they produce more due TO the high production
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