determinants Flashcards
1
Q
demand
A
trends prices of substitutes weather changes in income/population interest rate
2
Q
supply
A
prices of raw materials technological improvements changes in labour productivity indirect taxes subsidies
3
Q
factors affecting PeS
A
time raw materials need to be found availability of stock piling availability of spare capacity ability to alter production methods
4
Q
factors shift PPF to the right
A
new tech supply of labour through immigration increased productivity encouraging entrepreneurship improvement in human capital
5
Q
PPF to the left
A
emigration
disease
war
disaster
6
Q
factors affecting PeD
A
availability of sub
luxury or necessity
time
proportion of income spent on the good
