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Production And Costs
Question
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What is a supply schedule?  What is the effect on the supply of a good when Government gives a subsidy on the production of that good? Explain. 

Answer

Supply schedule is a table or schedule that illustrates the alternative quantities of a commodity supplied at different prices. If the data from the table is charted, it is known as a supply curve.
Example for a supply schedule:

Price Quantity Supplied
100 2000 units
110 2500 units
120 3000 units

When government gives subsidy for production, the revenue increases. When the Cost remains the same, profits rise, and as a result supply increases.

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Some More Questions From Production And Costs Chapter

What effect does a cost saving technological progress have on supply curve?

What effect does an increase in input price have on supply curve?

What effect does an increase in excise tax have on supply curve of product?

If a farmer grows rice and wheat, how will an increase in price of wheat affect supply curve of rice?

What is meant by market period?

How will an increase in number of firms shifts the market supply curve?

 

What is the shape of supply curve during very short (market period)?

What is the shape of supply curve during short or long period?

What is the price elasticity associated with a straight line supply curve passing through the origin?

Name three factors that can shift a supply curve.