1.2.2 Supply Flashcards
1
Q
What is supply?
A
The quantity the business is able and willing to supply at a given price in a time period
2
Q
What is the supply law?
A
As the price of a product increases, supply increases
3
Q
What are the 4 causes of change in supply?
A
-Cost of production ( if cost inc, supply dec)
-External shocks
-New technology
-Tax and subsidies
