1.2.2 Supply ๐ Flashcards
What is supply?
Quality of goods and services thatโs suppliers are willing and able to make available to the market
Describe a basic supply and demand curve 4 marks
Price (x axis ) and quantity (y axis)
Supply - to the sky
Demand - to the land
Mark point of equilibrium
If there is a decrease (demand or supply ) - in shift - going inwards
Increase - outshift going outwards
Mark new point of equilibrium
With axis
SUPPLy- if price of cost of supply increase - decrease in quantity available- more expensive
Demand - decrease in price ? - rise in quantity demanded
What are the 5 factors that effect the supply line ? (Move it)
Cost of production - a decrease in cost ? - caused an outshift (increase ) in supply
- decreased cost of raw materials
- improved efficiency and capacity utilisation- make use of money
-economies of scale
Opposite for inshift
Introduction of new technology - allows more efficiently and may decrease the cost of production๏ฟผ Leading to the supply line to move to the right which is out shift which is an increase๏ฟผ
Gov interventions - increase in tax? Inshift (decrease) in supply
Decrease ? Outshift
Gov Subsidy- money that give gives to businesses to encourage them to produce a product- Can be invested in production๏ฟผ
outshit on supply and demand
External shocks- Factors that are beyond the businesses control and has an impact on supply
world events - political situation inability to get supplies
Weather - agriculture๏ฟผ
government -price related to goods๏ฟผ๏ฟผ
What is an outshift?
Decrease ( in supply)
What is an Inshift?
Increase ( in supply)
