1.2.4 Flashcards
1
Q
What causes and expansion or contraction of supply?
A
Price
2
Q
Name 2 factors that affect supply
A
- Cost of production
- New tech
- Indirect taxes
- Subsidies
- External shocks
3
Q
What are government subsidies?
A
A form of financial support (or other) given to producer and sometimes consumers.
4
Q
Draw a supply and demand diagram
7 X-Factor
A
- Y axis = Price Level
- X axis = QD
- Supply Line
- Demand Line
- Equilibrium Point and Lines
- Labels on the axis
5
Q
Define supply
A
Quantity of a good or service that producers are willing and able to supply at a given price in each time period.
