1.2.4 Supply

Question 1

Define supply

Answer 1

quantity of goods that sellers are prepared to sell at any given price over a period of time

Question 2

What is a price quantity graph

Answer 2

A price-quantity graph will have a positive gradient. The line can shift left or right’s depending on other factors like costs of production, technology, government legislation or taxes (like VAT).

Question 3

What does a shift to the left in a price quantity graph mean

Answer 3

Increased costs, same demand

Question 4

What does a shift to the right mean in a price quantity graph

Answer 4

Decreased costs, but the same demand