1.2.2 Supply Flashcards
1
Q
What is supply?
A
Supply is the number of goods/services businesses are willing to sell at a given price in a specific time period.
2
Q
What is the relationship between supply and price?
A
As the price increases, the quantity supplied increases.
As the price decreases, the quantity supplied decreases.
At higher prices, businesses are incentivised to supply more of the product.
3
Q
What factors can have an impact upon supply?
A
Changes in cost of production.
New technology.
External shocks.
Indirect taxes.
Government subsidies.
