1.3

Question 1

Supply

Answer 1

quantity of a good or service a supplier is willing to bring to the market at a range of prices

Question 2

law of supply

Answer 2

the law of supply states that as the price of a good or service increases quantity supplied increases

Question 3

relax ceteris parabus

Answer 3

supply curve shifts

Question 4

supply curve moves right

Answer 4

increase in supply

Question 5

supply curve moves left

Answer 5

decrease in supply

Question 6

reasons for increase in supply

Answer 6

decrease in costs of production, deacrease in indirect tax, increase in productivity, decrease in price of a related good

Question 7

legal factors will have what effect on supply

Answer 7

increase costs of production and decrease supply

Question 8

political factor: sales tax

Answer 8

increases costs of production

Question 9

political factor: subsidy

Answer 9

decreases costs of production

Question 10

trade factors do what to firms costs

Answer 10

increase costs to firm

Question 11

Cultural factors do what to firms costs

Answer 11

increase costs of production

Question 12

implications of a shift of the supply curve: Increase

Answer 12

overtime work for staff may need a larger premises

Question 13

implications of a shift of the supply curve: decrease

Answer 13

lay off staff, reduce output, try to reduce costs