Supply Flashcards
What is supply
The quantity that a business is willing and able to supply at a given price at a given period
Explain the relationship between cost and supply
When cost In production goes up the supply will go down, if cost goes down supply will go up
Effects of introducing new technology
Lead to more efficient production techniques-lower unit costs
What is tax
Business individuals pay to the government to fund public services
What is direct tax
Taxes that individuals or business pay direct to the government
What is indirect tax
Taxes that individuals and businesses pay to someone else who then pays it to the government
What are government subsidies
Money given to a business by the government to help it with costs and to encourage the production of a particular product
