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1.Write down the factors that determine the supply?

The determinants of supply are

  • The techniques of production
  • The price of resources and
  • The number of sellers in the market

2.Write a short note about the supply schedule?

The supply schedule give information about the number of units that producers are willing to sell at all possible  prices other things remaining the same , i.e , availability and price of inputs used for production do not change technology does not change and number of seller do not change.

3.Write a short note about the relationship between supply and the price of the commodity?

Given the prices of the factors of production , the production of large quantity of the product would be more costly than the production of smaller quantities. If the costs of the out put rise , producers would be willing to supply more of the product only if they expect to get higher prices.

4.How can we get market supply curve?

The market supply curve derived by adding up the quantity produced by the total number of sellers of that product at given prices.

5.Write a short note about the supply function?

The supply function represents the relationship between quantity supplied and the prices of the commodity Thus,
Qs = f (p) here
‘ Q s ‘ means quantity supplied ‘ f ( p ) means function of price.

6.Define market ?

The market can be defined as a mechanism by which produced products can be sold to consumers at a price that is mutually agreeable to both consumers and producers.

7.Write about the relationship between demand schedule and supply schedule?

The demand schedule illustrates buyers willingness to pay for different quantities of a product and the supply schedule tells us how much the producers would be willing to sell at various prices.

8.What do you mean by revenue?

The money got by selling the product is called revenue. If the portion of the product become unsold , the producers would not receive expected revenue.

9.What do you mean by over production?

The situation of supply is greater than demand is called over production . The over production would lead to a fall in prices there fore prices would change.

10.How can rises in price occur ?

The storage in the supply of the product at any given price would result in a bidding up of the price become of excess demand do it demand is greater than supply it would lead to a rise prices.

11.Define equilibrium ?

An equilibrium is defined as state of rest where there is a balance of forces that counter each other. An equilibrium price is one where supply must equal demand.

12.What do you mean by market clearing prices?

At the agreed – upon price the amount supplied of a commodity is exactly equal to the amount demanded of it , i.e supply must equal to demand such a price is called market clearing price.

13.Which factor determines the price of the product?

The price of the product is determined by the interaction of demand and supply . This equilibrium price which is established results purely from the behaviour of producers and consumers.

14.Write a short note about the changes in demand and its effects on equilibrium price?

The demand curve would shift towards the right or left depending up on the nature of changes in price . When the income of the consumer increases, they can buy more at the same time , then the demand curve would shift to the right the demand curve would shift to the left if the income falls.

Paid Users Only!
Paid Users Only!
Std 8
Andhra Pradesh (English Medium)

Practice in Related Chapters
Basic Economic Concepts
Basic Aspects of Production
Problems of Distribution
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