Supply Flashcards
1
Q
what is supply
A
the quantity of a good or service that a producer is willing and able to supply
2
Q
what is the basic law of supply
A
as the selling price of a good increases, the quantity supplied increases
3
Q
explain why the law of supply works
A
at higher prices, businesses are incentivised to supply more of the product
4
Q
how does the supply curve slope
A
upwards from left to right
5
Q
what are the 4 main causes of changes in the amount supplied to a market
A
- production costs
- external shocks
- new technology
- taxation and subsidies
6
Q
A
