1.2.2.Supply Flashcards
1
Q
Supply
A
-No.of goods/services businesses are willing to sell at a given price in a specific time period
-Direct relationship between supply and price (As price increases quantity supplied also increases)
-At higher prices businesses are incentivised to supply more of the product (Curve slopes upwards)
2
Q
Factors leading to change in supply
A
Non price factors:
-Changes to cost of production(If it increases in price then supply decreases.Shifts outwards to left)
-New technology
-Indirect taxes
-Government subsidies
-External shocks
