Supply

Question 1

What is joint supply

Answer 1

Firms produce one Product alongside another product e.g computer processors and monitors

Question 2

What is composite supply

Answer 2

Firms produce a product that has multiple sources of Demand e.g rubber- car and shoe demand

Question 3

What is Competitive supply

Answer 3

Here firms may chose to switch where the resources are allocated. Changing from one product, to another
E.g farmer changing from growing potatoes to sweeds

Question 4

What are the 5 factors affecting a shift in supply curve

Answer 4

Decrease in cost of production

Improvements in technology

Decrease in tax/increase in subsidy

Decrease of price of goods in competitive supply

Expectation of future price increases

Question 5

What are the factors effecting elasticity of supply curve

Answer 5

Level of spare capacity

Level of stock

Ease of factor substitution

Time

Question 6

What is effective supply

Answer 6

Quantity of a good or service that a producer is willing and able to bring to the market at a give price in a given time period