What this deck covers
This deck focuses on Supply, giving you a quick way to review the definitions, rules, and examples that matter most for AP Macroeconomics.
AP Macroeconomics Flashcards: Supply
Study Supply in AP Macroeconomics with focused flashcards that help you recognize the idea, recall the key rule, and apply it in practice-style prompts.
AP Macroeconomics
Supply
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QUESTION
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What does an upward movement along the supply curve represent?
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ANSWER
Increase in quantity supplied due to a price increase. Movement along curve shows price-quantity relationship.
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Flashcard 1: What does an upward movement along the supply curve represent?
Answer: Increase in quantity supplied due to a price increase. Movement along curve shows price-quantity relationship.
Flashcard 2: What causes a shift in the supply curve?
Answer: Changes in production costs, technology, or number of sellers. Non-price factors that affect producers' willingness to supply.
Flashcard 3: What is the effect of increased sellers in a market?
Answer: Supply increases. More sellers add to total market supply.
Flashcard 4: What does a rightward shift in the supply curve indicate?
Answer: Increase in supply. Rightward movement shows more quantity supplied at each price.
Flashcard 5: What is the equilibrium price?
Answer: Price where quantity supplied equals quantity demanded. Market clearing price where supply and demand balance.
Flashcard 6: What is the effect on supply if government imposes a quota?
Answer: Supply decreases. Quotas legally limit maximum quantity that can be supplied.
Flashcard 7: Identify a scenario when the supply curve does not shift.
Answer: Change in price of the good itself. Price changes cause movement along, not shifts of, the curve.
Flashcard 8: Identify the effect of an increase in input prices on supply.
Answer: Supply decreases. Higher input costs raise production expenses, reducing supply.
Flashcard 9: Identify the result of a supply curve shift due to a new tax.
Answer: Leftward shift. Taxes increase production costs, shifting supply left.
Flashcard 10: What is a supply curve?
Answer: A graph showing quantity supplied at each price. Visual representation of the price-quantity supplied relationship.
Flashcard 11: What is the law of supply?
Answer: As price increases, quantity supplied increases. This describes the positive relationship between price and quantity supplied.
Flashcard 12: Identify the impact of improved production technology on supply.
Answer: Supply increases. Technology reduces costs, enabling greater supply.
Flashcard 13: What is the short-run effect of a natural disaster on supply?
Answer: Supply decreases. Disasters disrupt production, reducing available supply.
Flashcard 14: What is the law of supply?
Answer: As price increases, quantity supplied increases. This describes the positive relationship between price and quantity supplied.
Flashcard 15: What is the effect of a decrease in production costs on supply?
Answer: Supply increases. Lower costs enable producers to supply more.
Flashcard 16: Determine the effect of an increase in wages on supply.
Answer: Supply decreases. Higher wages increase production costs, reducing supply.
Flashcard 17: What happens to the supply curve with increased government regulations?
Answer: Supply curve shifts left. Regulations increase costs, reducing supply at each price.
Flashcard 18: What is the short-run effect of a natural disaster on supply?
Answer: Supply decreases. Disasters disrupt production, reducing available supply.
Flashcard 19: What happens to supply if future prices are expected to rise?
Answer: Current supply decreases. Producers hold back current supply to sell later at higher prices.
Flashcard 20: What is the effect of a decrease in production costs on supply?
Answer: Supply increases. Lower costs enable producers to supply more.
Flashcard 21: What is an example of a non-price determinant of supply?
Answer: Technology. Non-price factor that can shift the supply curve.
Flashcard 22: Which factor does not shift the supply curve: technology, income, input costs?
Answer: Income. Income affects demand, not supply of goods.
Flashcard 23: State the formula for elasticity of supply.
Answer: Es=%ΔP%ΔQs. Measures responsiveness of quantity supplied to price changes.
Flashcard 24: What is producer surplus?
Answer: Difference between market price and minimum price producers accept. Area above supply curve and below market price.
Flashcard 25: Identify the slope of a typical supply curve.
Answer: Upward sloping from left to right. Reflects the positive relationship between price and quantity supplied.
Flashcard 26: What does an upward movement along the supply curve represent?
Answer: Increase in quantity supplied due to a price increase. Movement along curve shows price-quantity relationship.
Flashcard 27: What does a leftward shift in the supply curve indicate?
Answer: Decrease in supply. Leftward movement shows less quantity supplied at each price.
Flashcard 28: What is the effect of increased sellers in a market?
Answer: Supply increases. More sellers add to total market supply.
Flashcard 29: What is the impact of a decrease in the number of producers?
Answer: Supply decreases. Fewer producers means less total market supply.
Flashcard 30: What is the effect of innovation in production methods on supply?
Answer: Supply increases. Innovation reduces costs, enabling increased production.
Flashcard 31: What happens to the supply curve with increased government regulations?
Answer: Supply curve shifts left. Regulations increase costs, reducing supply at each price.
Flashcard 32: Define marginal cost.
Answer: The cost of producing one additional unit of output. The additional expense of producing one more unit.
Flashcard 33: What is the effect on supply if government imposes a quota?
Answer: Supply decreases. Quotas legally limit maximum quantity that can be supplied.
Flashcard 34: What is the result of increased productivity on supply?
Answer: Supply curve shifts right. Higher productivity lowers per-unit costs, increasing supply.
Flashcard 35: What is the effect of a tax on supply?
Answer: Supply decreases. Taxes increase production costs, discouraging supply.
Flashcard 36: Identify the result of a supply curve shift due to a new tax.
Answer: Leftward shift. Taxes increase production costs, shifting supply left.
Flashcard 37: Define marginal cost.
Answer: The cost of producing one additional unit of output. The additional expense of producing one more unit.
Flashcard 38: What is the equilibrium price?
Answer: Price where quantity supplied equals quantity demanded. Market clearing price where supply and demand balance.
Flashcard 39: What does a perfectly inelastic supply curve look like?
Answer: Vertical line. Zero elasticity means supply doesn't respond to price changes.
Flashcard 40: Identify the impact of improved production technology on supply.
Answer: Supply increases. Technology reduces costs, enabling greater supply.
Flashcard 41: Which way does the supply curve shift with a subsidy removal?
Answer: Leftward. Removing subsidies increases costs, reducing supply.
Flashcard 42: What is producer surplus?
Answer: Difference between market price and minimum price producers accept. Area above supply curve and below market price.
Flashcard 43: Define market supply.
Answer: The total quantity supplied by all producers at each price. Sum of individual producer supplies at each price level.
Flashcard 44: What does a perfectly inelastic supply curve look like?
Answer: Vertical line. Zero elasticity means supply doesn't respond to price changes.
Flashcard 45: What is a supply curve?
Answer: A graph showing quantity supplied at each price. Visual representation of the price-quantity supplied relationship.
Flashcard 46: What is the impact of a decrease in the number of producers?
Answer: Supply decreases. Fewer producers means less total market supply.
Flashcard 47: What does a perfectly elastic supply curve look like?
Answer: Horizontal line. Infinite elasticity means any price change causes infinite supply response.
Flashcard 48: What is the effect of a tax on supply?
Answer: Supply decreases. Taxes increase production costs, discouraging supply.
Flashcard 49: Identify the effect of a price ceiling below equilibrium on supply.
Answer: Supply decreases. Below-equilibrium ceiling reduces incentive to supply.
Flashcard 50: Define variable costs in production.
Answer: Costs that change with the level of output. Expenses that vary directly with production level.
Flashcard 51: Identify the effect of an increase in input prices on supply.
Answer: Supply decreases. Higher input costs raise production expenses, reducing supply.
Flashcard 52: State the formula for elasticity of supply.
Answer: Es=%ΔP%ΔQs. Measures responsiveness of quantity supplied to price changes.
Flashcard 53: What causes a shift in the supply curve?
Answer: Changes in production costs, technology, or number of sellers. Non-price factors that affect producers' willingness to supply.
Flashcard 54: Which factor does not shift the supply curve: technology, income, input costs?
Answer: Income. Income affects demand, not supply of goods.
Flashcard 55: Identify the slope of a typical supply curve.
Answer: Upward sloping from left to right. Reflects the positive relationship between price and quantity supplied.
Flashcard 56: Define technological improvement in terms of supply.
Answer: Advancements that increase supply by reducing costs. Lower costs enable producers to supply more at each price.
Flashcard 57: Define technological improvement in terms of supply.
Answer: Advancements that increase supply by reducing costs. Lower costs enable producers to supply more at each price.
Flashcard 58: Define supply schedule.
Answer: A table showing quantity supplied at different prices. Shows the relationship between price levels and corresponding quantities supplied.
Flashcard 59: What is the effect of innovation in production methods on supply?
Answer: Supply increases. Innovation reduces costs, enabling increased production.
Flashcard 60: What does a leftward shift in the supply curve indicate?
Answer: Decrease in supply. Leftward movement shows less quantity supplied at each price.
Flashcard 61: What occurs when there is a surplus in the market?
Answer: Quantity supplied exceeds quantity demanded. Excess supply creates downward pressure on price.
Flashcard 62: Define supply schedule.
Answer: A table showing quantity supplied at different prices. Shows the relationship between price levels and corresponding quantities supplied.
Flashcard 63: What occurs when there is a surplus in the market?
Answer: Quantity supplied exceeds quantity demanded. Excess supply creates downward pressure on price.
Flashcard 64: Which way does the supply curve shift with a subsidy removal?
Answer: Leftward. Removing subsidies increases costs, reducing supply.
Flashcard 65: What is the effect of a subsidy on supply?
Answer: Supply increases. Subsidies reduce production costs, encouraging more supply.
Flashcard 66: Identify a scenario when the supply curve does not shift.
Answer: Change in price of the good itself. Price changes cause movement along, not shifts of, the curve.
Flashcard 67: Define diminishing marginal returns.
Answer: Decrease in additional output with increased input beyond a point. Explains why supply curves slope upward at higher quantities.
Flashcard 68: What happens to supply if future prices are expected to rise?
Answer: Current supply decreases. Producers hold back current supply to sell later at higher prices.
Flashcard 69: Define variable costs in production.
Answer: Costs that change with the level of output. Expenses that vary directly with production level.
Flashcard 70: What is the effect of a subsidy on supply?
Answer: Supply increases. Subsidies reduce production costs, encouraging more supply.
Flashcard 71: What is an example of a non-price determinant of supply?
Answer: Technology. Non-price factor that can shift the supply curve.
Flashcard 72: Define diminishing marginal returns.
Answer: Decrease in additional output with increased input beyond a point. Explains why supply curves slope upward at higher quantities.
Flashcard 73: What is the result of increased productivity on supply?
Answer: Supply curve shifts right. Higher productivity lowers per-unit costs, increasing supply.
Flashcard 74: What does a perfectly elastic supply curve look like?
Answer: Horizontal line. Infinite elasticity means any price change causes infinite supply response.
Flashcard 75: Identify the effect of a price ceiling below equilibrium on supply.
Answer: Supply decreases. Below-equilibrium ceiling reduces incentive to supply.
Flashcard 76: What does a rightward shift in the supply curve indicate?
Answer: Increase in supply. Rightward movement shows more quantity supplied at each price.
Flashcard 77: Determine the effect of an increase in wages on supply.
Answer: Supply decreases. Higher wages increase production costs, reducing supply.
Flashcard 78: Define market supply.
Answer: The total quantity supplied by all producers at each price. Sum of individual producer supplies at each price level.