Supply and Demand Flashcards
1
Q
What is supply?
A
The quantity of a product firms are willing to bring to the market at various prices in a given time.
2
Q
Factors that cause a shift in Supply
A
- Cost of production
- Ease of entry to the products market
- Indirect tax
- Subsidies
- Other e.g Weather and new technology
3
Q
Factors that cause a shift in Demand
A
- Ability to pay
- Attitudes towards a product
- Price and availability of substitutes and complements
- Other e.g Weather and change in population
