Concept 2 : Supply Flashcards

1
Q

What is supply?

A

The willingness & ability to sell a product

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2
Q

Why would a company choose to make and sell a product at a higher price?

A

More opportunity for profit maximisation

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3
Q

What is the relationship between Price & Supply?

A

Positive

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4
Q

Describe the positive relationship between Price & Supply

A

When there is an increase in price, the amount supplied will also increase

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5
Q

What are the 4 general factors for causing a change in supply?

A

Technology, Discoveries & Depletions
Taxes & Subsidies
Other Products
Weather & Geography

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6
Q

Fracking is an example of what factor for changing supply?

A

Technology

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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
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