1.2.4 Supply Flashcards
1
Q
What is supply?
A
Supply is the amount of a good/service that a producer is willing and able to supply at a given price in a given time period.
2
Q
What is a supply curve?
A
A supply curve is a graphical representation of the price and quantity supplied by producers.
3
Q
What is an extension in supply?
A
Moves up the curve which means higher price and quantity.
4
Q
What is a contraction in supply?
A
Moves down the curve which means lower price and quantity.
5
Q
What are the 5 factors which might influence a shift in supply?
A
/Costs of production
/Indirect taxes
/Subsidies
/New technology
/Change in the number of firms in the industry
