SUPPLY AND SUPPLY CURVE

Question 1

SUPPLY

Answer 1

Quantity of g/s producers are willing and able to produce at a given price in a given time period

Question 2

Law of supply

Answer 2

there’s a direct relationship between price and quantity supplied

As price increase Q S increase

Question 3

When thinking of law of supply we say

Answer 3

ceteris paribus

Question 4

supply being upward slopig indicates

Answer 4

direct relationship

Question 5

cetris paribus isolates

Answer 5

movemts related to price

Question 6

As price increase from P1 - P2 , explain what happens with supply

3 marks

Answer 6

QS increases

move upwards the supply curve

which is an extension of supply

Question 7

as price decrease from p1 - p3 what happens with supply

3 marks

Answer 7

QS decreases

as we move down the supply curve

which is a contraction of supply

Question 8

we move along curve to demo

Answer 8

law of supply

Question 9

what two reasons do producers supply more when price goes up

Answer 9

profit motive private producers have + COP

Question 10

explain profit motive when price increases for suppliers

Answer 10

If price goes up potentially more profit to be made if able to produce and sell more

so strong incentive to supply more to make profit

Question 11

explain COP motive to increase supply when price increases

3 marks

Answer 11

when q goes up supplier want higher price

as cop go up for suppliers to produce extra unit

so want higher price ot cover COP to allow em to maintain profit margins

Question 12

draw supply curve being affected by price

Answer 12

x axis - Q

Y - price

P1-P3 SHIFT

Q1- Q3 shifts

extension upwards + arrow

contraction downward + arow

Question 13

non price factors do what to supply

Answer 13

shift indepndent of price

Question 14

what influences willing + ability in supply

Answer 14

COP

Question 15

explain how lower COP influences willing + ability

2 marks

Answer 15

willing at same price to supply more as if you supply extra unit

reduction in costs mean can cover COP at same price easily -

Question 16

Increase in COP shift supply left as

Answer 16

producers less willing and able to produce with their COP at same price

Question 17

Acronym for non price supply shifters

Answer 17

PINTSWC

Question 18

P in PINTSWC

Answer 18

productivity

Question 19

I in PINTSWC

Answer 19

indirect tax

Question 20

N in PINTSWC

Answer 20

number of firms

Question 21

T in PINTSWC

Answer 21

technology

Question 22

S in PINTSWC

Answer 22

subsidies

Question 23

W in PINTSWC

Answer 23

weather

Question 24

C in PINTSWC

Answer 24

COP

Question 25

Explain how productivity can shift labour supply to the right

Answer 25

labour/capital

workers become more productive (producing more) + paid sme in give time period reducing COP shifting supply to right.

Question 26

draw a decrease in prodcutivity + explain

Answer 26

cost of production increase as paying workers same amount but producing less in given time period

shifting supply to left from S1 - S3 and reducing Q produced

Question 27

whats indirect tax

Answer 27

tax on production that firms have to pay

Question 28

explain how implemetned indirect atx on firms affects supply curve

Answer 28

increases COP

supply curve shifts to left

QD decreases

Question 29

explain how a high number of firms entering mkt affects supply curve

Answer 29

more supply in mkt

supply curve shifts right from S1 - S2

Question 30

technology massivley affects COP t/f

Answer 30

t

Question 31

explain effect of improvement in tech on supply curve

Answer 31

reduces COP as maybe don’t need to pay labour shifting supply right ,

Question 32

whats a subsidy

Answer 32

money grant give n by gov to producers to lower COP and encourage increase in output

Question 33

if i take away or decrease subsidy explain effect on supply

Answer 33

COP increase then supply shifts left from S1 -S3 and Q decreases

Question 34

explian effect on good weather

Answer 34

allows supply to increase shifting supply to right from S1 - S2 and increasing quantity

Question 35

what are the 6 cop

Answer 35

transport

oil

utilities

raw materiasl

labour

regulation - health and safety or environmentla laws

Question 36

draw on graph what happens if labour COP increases

Answer 36

cop increases

shift supply left

reduce QD

Question 37

what affects COP

Answer 37

PITS

Question 38

HOW DO WE rember WC in pints wc

Answer 38

when we drink lots of pints we neeed the WC hahahakakak