1.2.2 - Supply Flashcards
1
Q
Definition of Supply
A
Quantity of a good or service that a producer is willing and able to supply into the market at a given price in a given time period
2
Q
What relation is there in supply?
A
Direct as price increases supply increases
3
Q
Factors impacting supply (Acronym)
A
P - Productivity
I - Indirect taxes
N -New legislation
T - Technology
S - Subsidies
W - Weather
C - Changes in costs of production
4
Q
What does a change in price cause?
A
Movement along the supply curve
5
Q
What does a change in any other factor that’s not price cause on the supply curve?
A
Shifts the entire supply curve
6
Q
What does an outwward (right) shift of the curve?
A
More can be supplied
7
Q
What does an inward supply curve (left) mean?
A
Cannot supply as much at each price normally due to production costs
