2.3 - Supply Flashcards
Supply
the amount of goods that producers are willing to supply/sell at a given price at a given time
Profit
money earnt by producers, they aim to make more profit
Market Supply
the total supply of goods/services within a market
Individual Supply
the supply of goods/services by a individual producer
Movement on the supply curve
price influencing the quantity supplied and nothing else
Shift in the supply curve
more supply at each price because another factor is involved
Productivity
the efficiency of production or output/input
Indirect taxes
when the government forced firms to pay for producing a specific good/service e.g. cigarettes
Subsidies
the governments give a firm money to produce a good/service
Price elasticity of supply (PeS)
responsiveness of quantity supplied to a change in the price of a good
Elastic supply
when the change in supply is greater than change in price
Inelastic supply
when the change in supply is less than change in price
