1. Which of the following goals has an accurate quantitative measurement
1) full employment 2) economic guarantee 3) economic freedom 4) all answers are correct
2. The most important representatives of the theory of marginalism are
1) E. Böhm-Bawerk and A Smith 2)A. Marshall and W. Oyket 3)A. Smith and A. Marshall 4)A. Marshall and E. Böhm-Bawerk
3. Which of the following characteristics is contrary to the concept of "competitive market"
1) dispersion of economic power 2) the presence of a few buyers who demand all goods
3) a large number of sellers 4) relatively easy entry of manufacturers into this market
4. Commodity production is characterized by
1) labor has a directly social character 2) products are produced for on-farm consumption 3) a closed economy 4) economic isolation of producers and the development of exchange
5. Does not apply to the conditions for the emergence of commodity production
1) social division of labor 2) isolation of commodity producers
3) specialization of producers 4) the presence of land ownership
6. The market economy is
1) hierarchy 2) spontaneous order 3) traditional order 4) legal order
7. The concept of property in economic theory
1) the relationship of a person to a thing 2) the thing itself
3) relations between people regarding the appropriation of things 4) the right of the subject to use the thing.
8. Economic theory property rights was developed by representatives of the direction of economic analysis
1) neoclassical 2) neo-Keynesian 3) neoliberal 4) neo-institutional
9. Transaction costs do not include
1) production costs 2) costs of searching for information and concluding contracts
3) costs of specification and protection of property rights 4) costs of opportunistic behavior
10. The law of demand, of course, operates in the case of ...
1) purchases of rare and prestigious goods 2) purchases of normal (quality) goods
3) rush demand 4) switching demand to new, better products
1) the amount of goods and services that firms are willing to sell at a given price
2) the volume of production of goods and services in physical terms
3) the volume of products produced in the company per year in value terms
4) the volume of goods and services that the firm produces
12. The negative slope of the demand curve can be explained by ...
1) the tastes and preferences of consumers 2) the law of diminishing marginal utility
3) income and substitution effects 4) monetary income of consumers
13. If, with an increase in price from 30 to 50 rubles. per piece, the demand for goods is reduced from 170 to 150 thousand pieces, then the coefficient of arc elasticity of demand for price is ...
1)4 2)1 3)0.75 4)0.25
14. Reducing the supply of goods leads to
1) an increase in prices for complementary goods 2) an increase in demand for interchangeable goods
3) a crisis in the economy 4) increased state intervention in the economy
15. If the government has administratively minimum level prices, then
1) there will be a shortage 2) there will be overproduction 3) a new equilibrium will be established 4) welfare will increase.
16. In market economy a decrease in supply leads to an increase
1) prices 2) taxes 3) investment 4) savings.
17. The willingness to buy additional units of a product only at a lower price explains it better.
1) substitution effect 2) the principle of diminishing marginal utility 3) the income effect 4) the law of supply
18. The market for goods and services is in equilibrium if
1) demand equals supply 2) price equals cost plus profit
3) the level of technology changes gradually 4) the volume of supply is equal to the volume of demand
19. If the market price is below the equilibrium price, then
1) there are surpluses of goods 2) there is a shortage of goods 3) a buyer's market is formed 4) the price of resources falls
20. If the supply and demand for a product increase, then
1) the price will rise 2) the total quantity of goods will increase 3) the price will remain stable 4) the welfare of society will increase
21. If demand falls, the demand curve shifts.
1)down and left 2)clockwise rotation 3)up and right 4)counterclockwise rotation
22. A change in what factor does not cause a shift in the demand curve?
1) the tastes and preferences of consumers 2) the size or distribution of national income 3) the price of goods 4) the number or age of consumers
23. If two goods are interchangeable, then an increase in the price of the first will cause
1) a decrease in demand for the second product 2) an increase in demand for the second product
3) an increase in the volume of demand for the second product 4) a decrease in the volume of demand for the second product
24. Movement in the circuit model begins…
1) supply by firms of final products to the market consumer goods and services 2) the acquisition by firms of the resources necessary for their activities in factor markets 3) the receipt by households of income from the sale of their resources 4) the supply of resources by households to the market factors of production
25. Shifting the production possibilities curve to the left means… 1) an increase in resources 2) an increase in needs 3) an increase in income 4) a decrease in resources
1. The shape of the consumer indifference curve…
1) depends on the prices of goods 2) does not depend on the prices of goods
3) determined by his preferences 4) depends on his income
2. The difference between the cardinal theory of consumer behavior and the ordinalist one is ...
1) quantitative measurement of the utility of each unit of the good
2) comparison of different sets of goods
3) determination of the consumer's optimum, taking into account his budget
4) the use of indifference curves in the analysis of consumer behavior
3. The slope of the consumer's budget line when he buys two goods X and Y, the prices of which are respectively 5 and 40 den. units, equal to ...
1)(-1/8) 2)(-8/1) 3)(1/8) 4)(5/4)
4. Indifference curve for a normal product...
Please provide at least two answers
1) convex with respect to the origin 2) concave with respect to the origin
3) has a positive slope 4) has a negative slope
5. The slope of the consumer's budget line when he buys two goods X and Y, the prices of which are respectively 30 and 40 den. units.. is equal to...
1)(-3/4) 2)(-7/4) 3)(3/4) 4)(7/4)
6. The equilibrium of the consumer is achieved when the equality ...
1) the marginal rate of substitution to the ratio of prices of goods X and Y
2) marginal utility to the ratio of prices of goods X and Y
3) total and marginal utility
4) marginal rate of substitution marginal rate of technological replacement
7. Consumer equilibrium is achieved when ...
1) marginal utility equals marginal cost
2) marginal utility is maximum and marginal cost is minimum
3) the needs are met as much as possible with a minimum budget
4) marginal costs are minimal
8. If two types of resources are used in production, the marginal productivity of which is respectively equal to MRP 1 = 100, MRP 2 = 60, and resource prices - P 1 = 5 and - P 2 = 4, then ...
1) using the first resource is more efficient
2) using the second resource more efficiently
3) you need to increase the purchase of the second resource
4) you need to reduce the purchase of the first resource
9. Consumer equilibrium is reached when ...
1) the needs are maximally satisfied for a given budget constraint
2) the needs are maximally satisfied with the minimum budget constraint
3) there is an opportunity to fully spend your money
4) purchases are made at minimum prices
10. The prices of goods X and Y are respectively equal to Р x =20 and Р Y =15. Making a choice in favor of the purchase of good X, sacrificing good Y in a state of equilibrium, the consumer will acquire _____ units of good X.
Microeconomics
Correct answers are marked with a marker
volume of production of goods and services in physical terms
the volume of goods and services a firm produces
the volume of products produced in the company per year in value terms
the quantity of goods and services firms are willing to sell at a given price
The main factor determining the amount of demand is
System of individual preferences
administrative decisions
The price at which the entire quantity of a commodity offered for sale is purchased by consumers is called
equilibrium price
at the cost of mutual trade
elastic price
Consumers expect furniture prices to rise. As a result, in this market:
demand increases
supply increases
demand is decreasing
When new manufacturers appear on the market, most likely:
Demand will increase
The price will go up
The price will drop
Demand will decrease
For which product or service will demand increase to a greater extent with a general price reduction of 30%?
for detergents
for beautician services
The government has set a minimum price in the market above the equilibrium price. Ceteris paribus, sales volume:
should increase
should go down
Will not change
The company's output is 100 units. goods. If the price of a good is $2, the total cost of producing 100 units of a good is $130, then the firm's total profit is
If the total profit of the firm is 50 den. units, the total cost of issuance sold at a price of 3 den. units products amounted to 250 den. units, then the output is ___ units
The machine-tool plant produces 500 machine tools a year for 20,000 rubles each. The cost of producing one machine is 16 thousand rubles. If the cost of the machine decreases by 1 thousand rubles, then the profit of the plant will increase by ____ thousand rubles
If with a production volume of 100 units. production, the variable costs of the firm are 2000 rubles, and the average fixed costs are 10 rubles, then the average total costs are
If the demand function for product X has the form Qd \u003d 85-5R, and the supply function Qs \u003d 25 + 5R, then the equilibrium sales volume will be ____ units.
If the functions of supply and demand have the form: Qd=11-P, Qs= - 4+2P (Qd is the amount of demand, Qs is the amount of supply, P is the price, rubles per unit), then when the government sets a fixed price equal to 9 rubles, the sales volume will be ___ units.
If the functions of supply and demand have the form: Qd=11-P, Qs= - 4+2P (Qd is the value of demand, Qs is the value of supply, P is the price, rubles per piece), then when the government introduces a tax on sellers in in the amount of 3 rubles. per piece the equilibrium sales volume will decrease by ___ units.
If the functions of supply and demand have the form: Qd=11-P, Qs= - 4+2P (Qd is the value of demand, Qs is the value of supply, P is the price, rubles per piece), then when the government introduces a tax on sellers in in the amount of 3 rubles. per piece the amount of tax revenues will be ___ rub
The Veblen effect is:
unplanned demand that arose under the influence of momentary desire
the effect of increasing consumer demand associated with the fact that the product has a higher price
the effect of a change in demand due to other people consuming the good
Utility is:
property of a good to benefit the consumer
subjective value attributed to goods by people
possession of elements beneficial to human health
an objective property of goods that is the cause of their production and consumption
Marginal utility is the satisfaction that...
average quantity of goods consumed
inferior item
last unit of consumed good
unit of superior quality
If the fifth serving of ice cream in a day is not as tasty as the first, then this is an example:
deficit
law of demand
diminishing marginal utility
replacement prices
raw material costs
management personnel costs
Implicit (internal costs are:
fixed costs
variable costs
cost of purchasing factors of production
Which of the following costs are not considered when determining the optimal volume of output of the firm:
average sunk cost
average variable costs
internal costs
Economic profit is less than accounting profit by the amount
the opportunity cost of the firm's own resources
depreciation
variable costs
fixed costs
With an increase in the volume of production at the enterprise, the average fixed costs ...
first decrease and then increase
increase
remain unchanged
are declining
In the circular flow model, a business is...
lender in the income market
seller in the resource market
seller in the market of goods and services
buyer in the market
The main goals of the firm are _______ and _______.
utility maximization
satisfaction of demand
consumption maximization
profit maximization
The main goals of the firm are not _______ and _______.
utility maximization
satisfaction of demand
consumption maximization
profit maximization
Maximizing _______ and _______ are not the primary goals of the household.
utility
consumption
If with a production volume of 100 units. production, the variable costs of the firm are 2000 rubles, and the average fixed costs are 10 rubles, then the average total costs are ...
product homogeneity
The characteristics of a perfectly competitive market are...
enters the market freely
The break-even point of production and sales of products shows ...
the amount of sales at which the firm covers all fixed and variable costs without making a profit
the volume of sales at which the firm has the maximum cost of producing and selling products
the sales volume that maximizes the firm's profit
Unlike a competitive firm, a monopolist:
can set any price for your product
maximizes profit when marginal revenue and marginal cost are equal
can produce any amount of output and sell it at any price
given a market demand curve, can choose the combination of price and output that maximizes profit
Rewarding the entrepreneur for innovation is an element of:
only economic profit,
only accounting profit
economic and accounting profit
A perfectly competitive market is characterized by...
each manufacturer sets its own price
Producers are free to enter and exit the market
each seller has a tiny share of the market for this product
the products of firms are heterogeneous from the point of view of the consumer and the producer
Which of the proposed definitions is the best for the concept of "marginal cost"
additional costs caused general increase market prices by 1%
the maximum that the consumer can afford to spend
the amount of costs above the average variable costs required to produce additional. units of production
costs (costs) for the production of an additional unit of output
Implicit (internal) costs are:
fixed costs,
variable costs
the cost of purchasing factors of production
company's own resource costs
The firm's fixed costs are
costs of resources at prices in effect at the time of their acquisition
minimum cost of production of any volume of products under the most favorable conditions
costs incurred by the firm even if the product is not produced
implicit costs
Transformational costs are associated with
with production
Entrepreneur Ivanov opens his own laundry. He pays 32,000 rubles a year for renting premises, and 64,000 rubles for renting equipment. To obtain a license, the entrepreneur had to spend 50 thousand rubles of his own savings, withdrawing them from an account with Sberbank, where 20% per annum was accrued on the amount of the deposit.
His expenses for raw materials and materials amount to approximately 10 thousand rubles. in year. If Ivanov worked for hire, he would receive 24 thousand rubles. in year. Determine the amount of accounting and economic profit (Res. 44 and 10)
The demand function looks like: Qd = 100 - 20p. The fixed cost is $50 and the variable cost per unit is $2. Find the output that maximizes the monopolist's profit. (Answer Qd=30)
Using the data in the table, calculate the gross cost of producing three units of output
| Volume of production, units | |||
From the list below, select the cost function (costs) that is most likely related to the long-term period:
a) TC = 5Q 2 +3Q +10
c) MC = 100Q +5/Q
d) AVC = 5Q 2 + 75/Q
Unlike a competitive firm, a simple monopoly seeks to:
produce less product and set the price higher
maximize profit
choose a volume of output at which MR = P
produce more products and set prices higher
In the short run, a profit maximizing firm will stop production if
price below minimum average total cost
total revenue is less than total cost
total revenue is less than total variable cost
average variable cost is lower than price
If the price of the product does not cover the average cost of production, then the firm must:
stop production
continue production if P>AVC
continue production until the price covers all fixed costs
reduce overhead costs
Which type of cost is not an external (explicit) cost?
purchase price of raw materials and materials
the cost of an entrepreneur's time.
rent paid by the entrepreneur for use of the premises,
wage employees they hire
Determine which of the following types of costs are typical examples of variable costs for a firm:
raw material costs,
management personnel costs
support staff salaries,
business license fee
Imperfectly competitive markets are characterized by...
perfection of market information
a significant market share of an individual manufacturer
the presence of barriers to entry into the industry
product homogeneity
The demand function looks like: Qd = 200 - 20p. The fixed cost is $70 and the variable cost per unit is $3. Find the output that maximizes the monopolist's profit. (Answer Qd=70)
Using the data in the table, calculate the marginal cost of producing the first unit of output.
| Volume of production, units | |||
| Average fixed costs, rub. | |||
| Average variable costs, rub. |
AT long term
all costs are variable
all costs are fixed
variable costs rise faster than fixed costs
fixed costs rise faster than variable costs
The demand curve for a competitive firm's product is:
has a positive slope
horizontal line at a given price level
has a positive slope
vertical line at a given supply level
Which of the following types of curves never takes a U-shape:
An oligopoly is a market structure where...
not a large number of competing firms
only one big company
a large number of competing firms with differentiated products
a large number of competing firms with a homogeneous product
The average total cost of production reaches a minimum value at the volume of production when:
profit will be maximum
Which of the following is a characteristic of a perfectly competitive market?
the firm does not have market power
the firm chooses the output so as to maximize its profit
firms sell products that are imperfect substitutes for each other
The demand for the firm's product is not perfectly elastic.
The demand function looks like: Qd = 300 - 50p. The fixed cost is $70 and the variable cost per unit is $4. Find the output that maximizes the monopolist's profit. (Answer Qd=50)
Using the data in the table, calculate the average fixed costs for the production of the fourth unit of output.
| Volume of production, units | |||
| Average fixed costs, rub. | |||
| Average variable costs, rub. |
Which of the following statements means that the conditions of perfect competition are not met:
A firm is in equilibrium when its marginal revenue equals its marginal cost.
the marginal cost curve intersects the average cost curve at the point corresponding to the minimum value of ATC
average and marginal cost curves are U-shaped
In the short run, a competitive firm will not continue production if
average fixed costs above the price of the product
the price of the product is below the minimum average variable cost
total revenue does not cover the total costs of the firm
The short term is the period of time during which
all factors of production (resources) are variable
all factors of production (resources) are constant
the firm can change the amount of use of only part of the resources
the firm can change the amount of use of any resource
In a perfectly competitive market, the individual seller...
independently sets the price of its goods
enters the market freely
The characteristics of a perfectly competitive market are...
good awareness of producers about market conditions
producer impact on market prices
differentiation of products from the point of view of both the manufacturer and the consumer
unlimited quantity economic entities on the market
Transactional costs are related to
with production
finding a trading partner
with property rights
with conveyor assembly of products
economic costs
include explicit and implicit costs, incl. normal profit
include explicit but not implicit costs,
include implicit but not explicit costs,
exceed explicit and implicit costs by the amount of normal profit
Economics Which of the following statements is true in the short run?
marginal cost equals average cost when average cost is at its minimum
the demand curve for the firm's product has a negative slope
the price of the product is below the minimum average cost
for any level of output, marginal cost will be less than average total cost
The demand function looks like: Qd = 50 - 10p. The fixed cost is $20 and the variable cost per unit is $3. Find the output that maximizes the monopolist's profit. (Answer Qd=10)
Using the data in the table, calculate the marginal cost of producing the third unit of output.
| Volume of production, units | |||
| Average fixed costs, rub. | |||
| Average variable costs, rub. |
8. Studying mechanical balance, A. Cournot came up with the idea of economic equilibrium, relying on such a research method as …
1) analogy
2) comparison
4)simulation
9. Research on global issues modernity, held since the 1970s. under the auspices of the Club of Rome, are developing in line with ...
1) monetarism
2) Marxism
3) public choice theory
10 . Determine which theory of the following applies to modern liberalism
1) post Keynesianism
2) traditional institutionalism
7. Determine which of the following triples of economic resources are examples of factors of production only
1) bank account, shop owner, sulfur 2) bonds, coal, foreman
3) the number of employees decreases 4) the amount of capital used increases
9 . The production possibilities curve illustrates
1) neoclassical 2) neo-Keynesian 3) neoliberal 4) neo-institutional
3) income and substitution effects 4) monetary income of consumers
13. If, with an increase in price from 30 to 50 rubles. per piece, the demand for goods is reduced from 170 to 150 thousand pieces, then the coefficient of arc elasticity of demand for price is ...
14. Reducing the supply of goods leads to
1) an increase in prices for complementary goods 2) an increase in demand for interchangeable goods
3) a crisis in the economy 4) increased state intervention in the economy
15. If the government has administratively set a minimum price level, then
1) there will be a shortage 2) there will be overproduction 3) a new equilibrium will be established 4) welfare will increase.
16. In a market economy, a decrease in supply leads to an increase
18. The market for goods and services is in equilibrium if
1) demand equals supply 2) price equals cost plus profit
3) the level of technology changes gradually 4) the volume of supply is equal to the volume of demand
Please provide at least two answers
1) depends on the prices of goods 2) does not depend on the prices of goods
3) determined by his preferences 4) depends on his income
2. The difference between the cardinal theory of consumer behavior and the ordinalist one is ...
1) quantitative measurement of the utility of each unit of the good
2) comparison of different sets of goods
3) determination of the consumer's optimum, taking into account his budget
4) the use of indifference curves in the analysis of consumer behavior
4) marginal costs are minimal
8. If two types of resources are used in production, the marginal productivity of which is respectively equal to MRP1 = 100, MRP2 = 60, and resource prices - P1 = 5 and - P2 = 4, then ...
1) using the first resource is more efficient
2) using the second resource more efficiently
3) you need to increase the purchase of the second resource
4) you need to reduce the purchase of the first resource
9. Consumer equilibrium is reached when ...
1) the needs are maximally satisfied for a given budget constraint
2) the needs are maximally satisfied with the minimum budget constraint
3) there is an opportunity to fully spend your money
10. The prices of goods X and Y are respectively equal to Рх=20 and РY=15. Making a choice in favor of the purchase of good X, sacrificing good Y in a state of equilibrium, the consumer will acquire _____ units of good X.
The type of work: Tasks
File formats: Microsoft Word
Rented in educational institution:
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Description:
Test tasks
1.Prices of car tires with rising gasoline prices...
a) decrease
b) increase
c) stay the same
d) not related
2. Production of tractors (A) and combines (B). If the plant achieves savings in resources, then the new curve will be shown as a line on the graph:
3. Moving the supply curve to the left, other things being equal, leads to __________ equilibrium price and __________ equilibrium quantity.
a) growth, growth;
b) growth, reduction;
c) reduction, growth;
4. Which of the graphs illustrates the effect of an increase in the price of good A on the demand for substitute good B?
5. In the case when demand is inelastic and supply is elastic, the severity of the excise tax imposed by the government:
a) will be borne mainly by manufacturers;
b) will be borne mainly by consumers;
c) distributed equally between producers and consumers.
6. Demand and supply functions are given: QD=3000-1.5p and QS=-600+3.5p. The equilibrium amount will be:
7. The willingness to buy additional units of a product only at a lower price is best explained by:
a) substitution effect;
b) income effect;
c) the law of supply.
8. Reducing the supply of goods leads to an increase:
a) the total revenue of the seller, if the demand for the product is price elastic;
b) the seller's total revenue if demand is income inelastic;
c) demand for substitute goods.
9. The supply of good X is perfectly inelastic. If the demand for this good increases, then the equilibrium price will be:
a) and the equilibrium quantity will decrease;
b) will increase and the equilibrium quantity will decrease;
c) will increase and the equilibrium quantity will remain unchanged.
10. The graph shows a situation in which ...
a) an increase in supply causes a decrease in prices
b) an increase in demand causes an increase in prices
c) a decrease in supply is accompanied by an increase in prices
d) a decrease in demand causes prices to fall
11. The essence of the category proposal most accurately reveals the definition ...
a) the quantity of goods and services firms are willing to sell at a given price
b) the volume of goods and services that the firm produces
c) the volume of production of goods and services in physical terms
d) the volume of products produced in the company per year in value terms
PRACTICAL WORK “LINKED MARKETS”
TASK #1
An epidemic of black pod disease has struck African plantations of cocoa beans, which are the main raw material for the production of chocolate and chocolates. What is happening in the market for chocolate, caramel, cocoa beans, pickled cucumbers?
TASK #2
When going on a trip, people are increasingly buying travel bags made of modern materials, preferring them to traditional leather suitcases. What is happening in the market for suitcases, leather, shoes and bags?
TASK #3
A new plant for the production of washing machines has been built in the city of Chisty, fully automating the entire washing process. What is happening in the market of washing machines, laundry services, washing powder, toilet soap?
TASK #4
Suppose that an active anti-nicotine campaign was started in the country and many people decided to quit smoking. As a means to help get rid of a bad habit, a new special kind of chewing gum is recommended. What is happening in the market for tobacco products, chewing gum, ashtrays and lighters?
We solve problems
A. The demand function for oranges looks like Qd = 7 - P, the supply function looks like this Qs = -5 + 2P. Determine the equilibrium price and the equilibrium quantity sold. Change public policy pricing led to the establishment of the price of oranges at the level of 3 units, how will the market situation change?
B. The demand function for washing machines has the form: Qd = 15 - P, and the supply function Qs = -5 + 3P. Determine the value of the equilibrium price and the equilibrium sales volume of this product. Let's say a sales tax of 30% of the buyer's price was introduced. Determine the new parameters of the equilibrium volume and the equilibrium sales price. Will the situation on the market change compared to the situation of no state intervention?
B. Using the data in Table 1, solve the following problem. The state, seeking to support domestic chocolate producers, sets the minimum price at the level of 4 units. Determine how the volume of chocolate sales, buyers' expenses and sellers' revenues will change compared to the free competition market if: a) the state does not purchase chocolate; b) the state will purchase chocolate so that all chocolate produced is sold.
D. In country N, the demand for tobacco is described by the equation: Qd = 80 - 2P, and the supply of tobacco Qs = 10 + 10P. In country Y, supply and demand are described by the following equations Qd = 20–8P and Qs = 10 + 20P. Suppose that, until recently, political conflict between countries has contributed to locking their markets within national borders. Determine the equilibrium parameters in the markets of both countries. After years of alienation, the governments of the countries signed a free trade agreement, which meant the free import and export of goods without paying import and export duties. What will be the new equilibrium parameters.
E. Supply and demand in the pizza market are described by the following equations: Qd = 110 - 10P, Qs = 20 + 10P. Find the value of the equilibrium price and sales volume. How will the equilibrium parameters change if the government introduces a tax of 2 cu. for one pizza.
Under offer microeconomics understands the quantity of a good that sellers are willing and able to sell on the market for a given good in a given period of time under given conditions.
1. The offer relates to some product, good, produced for sale. For example, a farmer may grow some potatoes for his own consumption and some for sale. It is the second part that provides the offer of this product.
2. The offer appears as the sum of offers from individual sellers. Although on monopoly market it is provided by one seller.
3. Sellers are understood to be everyone who offers goods: manufacturers, wholesalers or retailers, warehouses, shops, etc.
4. The offer of this product is provided in a certain market: local, regional, national.
5. The value of the offer is determined for a certain period of time: at the moment, day, week, month, etc. Accordingly, at the moment the offer includes goods that are in stock, and for a long period, in addition, and those that will be produced and offered for sale in a given period of time.
The conditions under which the offer is formed are determined by the prices for the given product and the sources of supply.
The price may be such that the produced goods may not be offered. The main source of supply is production. But it can be considered as inventory. For example, a product is produced, but due to an unfavorable price, it is sent not to the market, but to a warehouse where it lies, waiting for a favorable price to be established. If such a price is set, the goods from the warehouse are sent to the market.
Since in one way or another it is production that determines supply, the main supply factors are those that determine production itself. It can be noted that sentence (S) is functionally dependent on various factors (a, b, c, etc.):
S = f ( a, b, in, G, d, e).
a. First of all, the proposal depends on the availability of resources necessary for its production. For example, the absence natural conditions necessary for growing bananas, determines that the supply of this product is provided by imports, that is, production in those countries where the climate allows them to be grown.
b. The offer depends on the technology of production of this product. Production, depending on the technology, can be piece and mass, determining the appropriate offer.
in. An important supply factor is the cost of production and what determines it. High costs limit supply, low costs. make it possible to provide a great offer.
For example, the high production costs of ocean liners lead to their single-piece production, the low production costs of paper clips allow them to be produced and sold in millions of pieces.
G. The price of a product affects the supply of a product. An increase in price, other things unchanged, leads to an increase in supply, a decrease in price leads to a reduction in supply. This stable relationship is characterized as law of supply.
The action of this law, as well as the law of demand, is illustrated both with the help of a supply scale and with the help of a curve.
If we take the already mentioned cutlets in the canteen, then the dynamics of the supply of this product may look like this.
Table 2 - Product offer scale
