AP Macroeconomics Flashcards: Supply
Written by AP Content Team, Verified for 2026 AP Exams, Last updated: May 2026
Review key ideas with interactive flashcards. This set includes 10 cards to help you master important concepts.
What is a key factor mentioned that can shift the market supply curve?
Changes in input prices are a key factor (determinant) that can cause the entire market supply curve to shift.
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What is a key factor mentioned that can shift the market supply curve?
Changes in input prices are a key factor (determinant) that can cause the entire market supply curve to shift.
What is the difference between a change in 'quantity supplied' and a 'change in supply'?
A change in quantity supplied is a movement along the curve caused by a price change, while a change in supply is a shift of the entire curve caused by a non-price determinant.
What does the law of supply mean for the shape of the supply curve?
The positive relationship between price and quantity supplied results in an upward-sloping supply curve.
What is the law of supply?
The law of supply states there is a positive relationship between the price of a good or service and the quantity supplied.
If the price of raw materials used to make a product increases, what happens to the supply curve for that product?
An increase in input prices, a determinant of supply, causes the market supply curve to shift to the left, indicating a decrease in supply.
Describe the relationship between price and quantity supplied.
There is a positive relationship between price and quantity supplied; as the price of a good increases, the quantity producers are willing to supply also increases.
What are the determinants of supply?
Determinants of supply are factors, other than the good's own price, that influence producer supply and cause the market supply curve to shift.
What is the effect of a change in a determinant of supply?
A change in a determinant of supply, such as input prices, causes the entire market supply curve to shift to the left or right.
What happens to the quantity supplied of a good if its market price falls, assuming no other changes?
According to the law of supply, a fall in the market price will cause a decrease in the quantity supplied, which is shown as a downward movement along the supply curve.
Define 'supply curve'.
A supply curve is a graphical representation showing the positive relationship between the price of a good and the quantity producers are willing to supply.