Supply Flashcards
Definition of supply
The quantity of a good or service that a firm is willing and able to produce at any given price level
What is profit
Revenue - costs
What causes a movement along the supply curve
A change in price
Extension - up
Contraction - down
What causes a shift in the supply curve
Any factor that alters a firms willingness or ability to supply a good other than a change in price
What factors shift a supply curve
The cost of production
The government
Productivity changes
The Weather
Joint Supply
Competitive supply
What is a tax
It is a compulsory levy on a individual or firm by the governmnet
What is a subsidy
It is a grant given to an individual or firm by the governmnet
What is productivity
It is a measure of the rate of change of output e.g. output per worker
