1.2.2 supply

Question 1

define supply

Answer 1

is the amount of a product that firms are willing and able to offer in any given price

Question 2

what is supply affected by?

Answer 2

the higher the price of a product the more supply will be offered to the market.
- supply is directly affected by how accessible and profitable a market is for suppliers

Question 3

what way does the supply curve slope and why does it do this.

Answer 3

the supply line slopes up because the quantity supplied will increase as the price rises

Question 4

what happens when the supply is set to a specific number on a graph?

Answer 4

the supply will slope completely horizontally( straight) as the supply will not change regardless of price

Question 5

what does a supply line find?

Answer 5

To find the point along a curve where the price and quantity meet to determine a given amount of supply

Question 6

what are the other factors which increase or decrease a supply?

Answer 6

• changes in the costs of production, such as wages, energy, materials, rent
• external shocks such as world events
• introduction of new technology making production process more efficient
• indirect taxes
• government subsidies