OCR4 Worksheet Supply-curve PDF

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Pre seminar activity papers for understanding the basics of economics....

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OCR A Level Economics

The supply curve Worksheet Key terms market supply the quantity of a good or service that all the firms in a market are willing to sell supply the quantity of a good or service that firms plan to sell at given prices in a given period of time supply curve a graph showing the quantity supplied at any given price

The table shows a supply schedule for product A. Price (€s)

Quantity supplied

0

0

20

1000

40

2000

60

3000

80

4000

100

5000

120

6000

140

7000

160

8000

1 Using the graph below, plot the supply curve for product A. Label the curve S1.

Price

Quantity

AS/Year 1 Microeconomics

© Hodder & Stoughton Limited 2015

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OCR A Level Economics

2 The price rises from €60 to €40. Explain, using the correct terminology, what happens to the quantity supplied. ……………………………………………………………………………………… ……… ……………………………………………………………………………………… ……… ……………………………………………………………………………………… ……… When the price of the product changes there is a movement along the supply curve. When any other determinant of supply alters there is a resultant shift in the position of the curve. Supply will either increase (leading to a rightward shift in the curve) or decrease (leading to a leftward shift in the curve). Figure 1

Starting on supply curve S1 for each question, write down how the response will affect supply. 3 Following an effective training course, the productivity of the firm’s employees increases. ……………………………………………………………………………………… ……… 4 In order to try and further reduce the government budget deficit, the level of VAT rises from 20% to 22%. ……………………………………………………………………………………… ……… 5 The good being produced is a merit good and the government introduces a subsidy on it. ……………………………………………………………………………………… ………

AS/Year 1 Microeconomics

© Hodder & Stoughton Limited 2015

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6 There is an improvement in the state of technology which improves the efficiency of production. OCR A Level Economics

……………………………………………………………………………………… ……… 7 The firm expects the price of the product to increase in the autumn. What might be the effect on supply during the summer months? ……………………………………………………………………………………… ………

AS/Year 1 Microeconomics

© Hodder & Stoughton Limited 2015

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