2.1 Supply Flashcards
1
Q
What is supply?
A
refers to the quantity of a good or service that firms plan to sell at given prices in a particular time period
2
Q
What is the law of supply?
A
as price increases the quantity supplied will increase
3
Q
What does conditions of supply mean?
A
factors other then price of the good that lead to a change in the supply curve
4
Q
What are the conditions of supply?
A
- production costs
- productivity of labour
- taxes on businesses
- production subsidies
- technology
5
Q
causes in shift of supply?
A
- changes in the unit costs of production
- changes in technology
- government taxes and subsidies
- changes in climate
- change in price of substitute
- number of producers in the market
