Changes In Quantity Supplied

Question 1

Name the 6 factors that affect supply

Answer 1

Natural disasters
New production technology 
Price related to a specific good 
Producers' expectations about the products and services.
Government regulations
Cost of production inputs

Question 2

Explain natural disasters

Answer 2

Floods, hurricanes, viruses and earthquakes

Question 3

Explain new production technology

Answer 3

When technology resulted in combine harvesters, farms could increase their supply of wheat dramatically

Question 4

Describe price related to a specific good

Answer 4

Textile manufacturers- price of cotton can affect price

Question 5

Explain a producers’ expectations about products and services

Answer 5

Weather forecast for a heat wave. Ice cream producers expect their products to increase

Question 6

Explain government regulations

Answer 6

Imposes an import duty on a product, supply of that product will decrease

Question 7

Explain cost of production inputs

Answer 7

If labour or raw materials, for example, become more expensive, producers will need to reduce their supply

Question 8

How is a decrease in supply shown on the graph

Answer 8

When the supply curve shifts down and to the right

Question 9

How can an increase in supply be shown on a graph

Answer 9

The supply surve will shift up and to the left