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Generally, we expect that supplying more of a product will have a higher marginal cost than the cost of the units previously produced. A typical example is that a farmer needing to grow more wheat will have to use less productive land and more fertilizer than the wheat he has already planted on his best land.
But some products have a high cost to produce one unit then very low costs to produce others. A good example is computer software. The first disc may cost $1 million and each further disc 10 cents. Thus marginal unit costs go down dramatically as more product is supplied. The same could be said of bank transactions on an ATM machine: To do one transaction on a new machine may cost them $100,000 but all the others are more like a dime each.
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Explain the law of supply in your own words?
Law of supply: If demand is held constant, an increase in supply leads to a decreased price, while a decrease in supply leads etc
How does a supply curve illustrate the law of supply?
it always rises from left to right
Because of the law of supply supply curves always slope?
upward and to the right
Explain the say's law in economics?
states that supply creates its own demand.
What is the relationship between the law of supply and the supply curve?
it always rises from left to right
Explain the law of supply in your own words?
Law of supply: If demand is held constant, an increase in supply leads to a decreased price, while a decrease in supply leads etc
Because of the law of supply supply curves always slope?
upward and to the right
How does a supply curve illustrate the law of supply?
it always rises from left to right
Explain the say's law in economics?
states that supply creates its own demand.
What is the relationship between the law of supply and the supply curve?
it always rises from left to right
Law of demand and supply?
Consumers is the law of supply and demand.
Explain difference between fact of science and law of science?
law - an action that has been observed so consistently that scientists are convinced that it will always happen (ex: the law of gravity)
How do you explain the law of variable proportion?
Explain the Law of Variable Propotion
What According to the law of supply and demand when supply increases what else happens?
According to the law of supply and demand when supply increases, prices will decrease.
Government is never above the law?
Also described as the concept of limited government. Hold that government and its officers are always subject to and never above the law.
Does Newton's second law hold true on the surface of the moon?
Newton's second law always holds true. Hence, it's a law (newtonian physics do fail when you take extreme cases, such as traveling near the speed of light, but for 90% of cases you can imagine they are always, ALWAYS, true).
When according to the law of supply and demand when supply increases what else happens?
According to the law of supply and demand when supply increases, prices will decrease.
