Concept 2 : Supply Flashcards
1
Q
What is supply?
A
The willingness & ability to sell a product
2
Q
Why would a company choose to make and sell a product at a higher price?
A
More opportunity for profit maximisation
3
Q
What is the relationship between Price & Supply?
A
Positive
4
Q
Describe the positive relationship between Price & Supply
A
When there is an increase in price, the amount supplied will also increase
5
Q
What are the 4 general factors for causing a change in supply?
A
Technology, Discoveries & Depletions
Taxes & Subsidies
Other Products
Weather & Geography
6
Q
Fracking is an example of what factor for changing supply?
A
Technology
7
Q
Here is a list of factors. Decide whether they effect a change in demand, supply or both: A.Taxes & Subsidies B. Related Products C. Advertising D. Other Products (Substitutes) E. Technology F. Geography G. Income H. Population I. Tastes
A
A. Both B. D C. D D. S E. S F. S G. I H. D I. D