1.3 Supply Flashcards
1
Q
What is supply ?
A
the amount of goods or service that producers are willing and able to provide to consumers at a given price and time
2
Q
How does Cost Of Production affect supply ?
A
- Rise = decrease
- Fall = increase
3
Q
What are the factors that affect supply ? (PINTSWC)
A
- Productivity
- Indirect Taxes
- Number of Firms
- Technology
- Subsidies
- Weather
- Costs of Production
4
Q
What is Joint Supply ?
A
When an increase in supply of good X, means more is automatically supplied of good Y
5
Q
What is Competitive Supply ?
A
When an increase in price of good X leads to a contraction in supply of good Y
