1.2.2 supply Flashcards
1
Q
define supply
A
the quantity of a good or service that a producer is willing and able to make available on the market at a given price over a given period of time
2
Q
what can cause the costs of production to increase?
A
rise in raw materials
rise in minimum wage
rise in overheads
rise in rent or mortgage rates on premises
3
Q
introduction of technology
A
new technology means that more goods can be supplied.
4
Q
indirect taxes
A
the government increases tax on goods = supply decreases
5
Q
government subsidies
A
payment from the government to encourage more suppliers to enter the market and to supply more
6
Q
external shocks
A
change in oil price
change in tax rate
changes in labour laws
