1.2.2 supply Flashcards
1
Q
1.2.2
what does supply mean?
A
supply is the amount of a good or service that producers are willing and able to sell at any given price
2
Q
1.2.2
what are producers?
A
producers are those people that create and supply goods and services to a market
3
Q
1.2.2
as price falls quantity supplied ______?
A
as price falls quantity supplied decreases
4
Q
1.2.2
as price rises quantity supplied _____?
A
as price rises quantity supplied increases
5
Q
1.2.2
what factors affect supply?
A
- government subsidies
- intro of new tech
- indirect taxes
- changes in the cost production
- external shocks
6
Q
1.2.2
what will cause movement along the curve?
A
price is the only element to cause a movement along the curve
7
Q
1.2.2
an increase in supply causes a shift……?
A
an increase in supply causes a shift to the right
8
Q
1.2.2
a decrease in supply causes a shift…..?
A
a decrease in supply causes a shift to the left
