6: Supply Flashcards
1
Q
Market Price (3)
A
- The price of a commodity
- That has been established by the market
- That is, where supply equals demand
2
Q
Supply chain (3)
A
- The whole path from suppliers of raw materials
- Through production and storage
- On to customer delivery
3
Q
Supply curve (3)
A
- A line
- Showing the quantity of goods
- Firms want to supply at different price levels
4
Q
Supply (3)
A
- Quantity of a product
- That producers are able to deliver
- Within a specific time period
5
Q
Factors leading to a change in supply (6)
A
- Changes in costs of production (Materials/rent/salary etc…)
- Introduction of new tech (E.g. robots)
- Indirect taxes (Discourage supply)
- Government subsidies (Encourage supply)
- External shocks (Changes in commodity prices)
- Physical constraints (Full capacity)
