Supply Flashcards
1
Q
Define SUPPLY
A
Supply is the amount of a good that suppliers are willing and able to sell at a set price at any given time.
2
Q
What are the non price factors affecting supply?
A
- Costs of production
- External shocks
- New technology
- Indirect taxes
- Subsidy
3
Q
Define INDIRECT TAXES
A
An indirect tax is a tax imposed by the government on consumer spending e.g. VAT
4
Q
Define a SUBSIDY
A
A subsidy is a government issued grant given to producers that acts as an incentive to product more of a product.
