Supply

Question 1

what is supply ?

Answer 1

supply can be defined as the amount of a good are a service that producers are willing and able to sell at a given price .

Question 2

what are factors that influence supply ?

Answer 2

• the price of a good
• costs of production
• prices of competition
• technological progress

Question 3

what is joint supply?

Answer 3

joint supply is occurs when the production of a product creates a by product that can also be supplied .
e.g printer and printer ink

Question 4

what is individual supply?

Answer 4

individual supply is the ability and willingness to provide a good or service at any given price.

Question 5

factors that cause a SHIFT in a supply curve?

Answer 5

• costs of production
• indirect taxes
• government subsides
• introduction to new technology

Question 6

what is composite supply?

Answer 6

composite supply occurs when the provision of a good/service can come from a varierty of sources
e.g heat can come from gas or electric

Question 7

describe how a competitive market would react to excess supply ?

Answer 7

1. the price of a good will fall
2. demand will therefore increase
3. suppliers might leave the market
4. the supply of a good will decrease due to the decrease in price
5. new equilibrium point is made

Question 8

what is meant by ‘negative externality’?

Answer 8

a harmful effect that affects third parties