5- Supply Flashcards
1
Q
What causes a movement up or down the supply curve?
A
Price changes
2
Q
Expansion in supply
A
Movement up the supply curve- increase in price, increase in quantity supplied.
3
Q
Contraction in supply
A
Movement down the supply curve- fall in price, fall in quantity supplied.
4
Q
Conditions of supply
A
Productivity Indirect tax Number of firms Technology Subsidy Weather Costs of production Joint supply Government legislation Cartels
5
Q
What does a change in the conditions of supply do to the supply curve?
A
Shifts the supply curve inwards or outwards.
6
Q
What explains the shape of the supply curve?
A
Profit motive
