1.2.4 Supply Flashcards
1
Q
The distinction between movements along a supply curve, shifts of a supply curve and supply definition
A
supple is the ability and willingness for a firm to produce a good at a given price at a given time
a movement along the supply curve is caused by a change in the price of the good
a movement of the whole supply curve is caused by a change in the factors that affect supply
2
Q
The factors that may cause a shift in the supply curve (the conditions of supply)
A
- cost pf production
- price of other goods
- weather
- technology
- goals of the supplier
- government legislation
- taxes and subsidies
- producer cartels
