AP®︎ Macroeconomics: Topic 1.5 Flashcards

As price rises, quantity supplied rises; as price falls, quantity supplied falls.

An upward-sloping graph showing the positive relationship between price and quantity supplied.

Nonprice factors that shift supply: resources, other good prices, taxes, technology, expectations, and sellers.

Lower input costs increase supply; higher input costs decrease supply.

If alternative products become more profitable, producers shift resources away, reducing current supply.

Higher production taxes or stricter rules decrease supply; lower taxes or fewer rules increase it.

Better production methods increase supply by lowering costs or raising productivity.

Beliefs about future prices or profits can increase or decrease current supply.

More firms in a market increase supply; fewer firms decrease supply.

The whole curve shows all amounts offered at different prices, while one point shows a specific price amount.

Price changes move along the curve, while nonprice factors shift the entire curve.