1.2.2 Supply

Question 1

What is supply?

1

Answer 1

• Quantity of product producers are able to deliver in certain time period

Question 2

What are the factors leading to a change in supply?

5

Answer 2

• Changes in costs of production
• Intro of new tech
• Indirect taxes
• Gov subsidies (gov handout to supplier)
• External shocks

Question 3

How can introduction of new technology (robots) affect supply?
2

Answer 3

• ^Labour productivity, >cost per unit

- Boost production capacity

Question 4

What are indirect taxes?

1

Answer 4

• Taxes on goods and services (VAT)

Question 5

How can external shocks affect supply?

2

Answer 5

• Natural disaster (flood) disrupt supply lines, problem for those carrying v low stock
• > Quantity available, ^price