1.1.3 supply Flashcards
1
Q
Supply
A
Quantity of a good/service firms will offer for sale at a certain price over a period of time
2
Q
Effective supply
A
Quantity of a good/service firms are willing and able to offer for sale at a certain price over a period of time
3
Q
Law of supply
A
There is a positive casual(proportionate) relationship between the price of a good and its quantity supplied over a period of time
4
Q
What causes a movement along the supply curve
A
Change in price
5
Q
What causes a shift in the supply curve
A
- Indirect taxes
- Subsidies
- Cost of production
- Changes in tech
- Natural factors (natural disasters, weather)
