AP Microeconomics 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.
Differentiate 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 change in the good's own-price, whereas a 'change in supply' is a shift of the entire curve caused by a change in a non-price determinant.
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Differentiate 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 change in the good's own-price, whereas a 'change in supply' is a shift of the entire curve caused by a change in a non-price determinant.
Define the law of supply.
The law of supply states that there is a direct relationship between the price of a good and the quantity supplied; as price increases, quantity supplied increases.
What causes a supply curve to shift?
Changes in the determinants of supply, such as producer incentives or technology, cause the entire supply curve to shift to the left or right.
Why is the market supply curve upward-sloping?
The market supply curve is upward-sloping because it reflects the law of supply, where a higher price provides an incentive for producers to increase the quantity they supply.
What is the relationship between price and quantity supplied?
There is a direct, positive relationship between price and quantity supplied. Producers are willing to sell more of a good at a higher price and less at a lower price.
What causes a movement along a supply curve?
A change in the good's own-price causes a change in quantity supplied, which is represented as a movement along the supply curve.
If a new, more efficient production technology is introduced, how does this affect supply?
This technological improvement acts as a positive incentive for producers, causing the supply curve to shift to the right, indicating an increase in supply at every price.
If the market price for corn falls, what is the effect on the quantity of corn supplied?
A fall in the price of corn causes a decrease in the quantity supplied, which is shown as a downward movement along the existing supply curve.
How do producers respond to changes in incentives?
Producers respond to changes in incentives, like new technology, by altering their production levels at all prices, which causes the supply curve to shift.
How is the market supply curve derived?
The market supply curve is derived from the horizontal summation of all individual producers' supply curves for a specific good or service.