Factors that may shift the Supply Curve

Question 1

What are factors that may shift the supply curve?

Answer 1

Factors that may shift the supply curve include changes in production costs, indirect taxes, subsidies, changes in technology, and natural factors.

Question 2

What does it mean to be ‘Volatile’?

Answer 2

Changing quickly and suddenly

Question 3

What are ‘Ventures’?

Answer 3

new business activities or projects that involve taking risks

Question 4

What are ‘indirect taxes’?

Answer 4

Taxes levied on spending, such as VAT

Question 5

What is ‘productivity’?

Answer 5

It’s the rate at which goods are produced, and the amount produced in relation to the work, time, and money needed to produce them

Question 6

What is ‘consumption’?

Answer 6

Utilization of goods, services, energy, or natural materials in a particular period of time

Question 7

What’s a ‘subsidy’?

Answer 7

It’s the money that is paid by a government or an organization to:

• make prices lower
• reduce the cost of producing goods
• producing a service, usually to encourage the production of certain goods.

Question 8

What is ‘yield’?

Answer 8

It’s the amount of something that is produced, such as crops or oil extracted

Question 9

What’s ‘formwork’?

Answer 9

It’s the temporary or permanent moulds into which concrete or similar materials are poured

Question 10

How do changes in production costs affect the supply curve?

Answer 10

• Changes in production costs, such as wages and raw materials, can influence the quantity supplied.
• If costs rise, supply may decrease as profits decrease.

Question 11

What effect do indirect taxes have on the supply curve?

Answer 11

• Indirect taxes increase production costs for firms, leading to a leftward shift in the supply curve.
• These taxes are often used to discourage consumption of certain goods and to raise government revenue.

Question 12

How do subsidies affect the supply curve?

Answer 12

• Subsidies decrease production costs for firms, leading to an increase in supply.
• They are often used by governments to encourage the production of certain goods.

Question 13

What impact do changes in technology have on the supply curve?

Answer 13

New technology can increase production efficiency, lowering costs and increasing supply. This leads to a rightward shift in the supply curve.

Question 14

How do natural factors influence the supply curve?

Answer 14

• Natural factors such as weather and pests can affect production.
• Good conditions increase supply, shifting the curve to the right, while adverse conditions decrease supply, shifting the curve to the left.

Question 15

Explain how subsidies can impact the supply curve.

Answer 15

• Subsidies are payments made by governments to firms to reduce their costs of production.
• By lowering production costs, subsidies encourage firms to increase supply, leading to a rightward shift in the supply curve.