Supply and the Supply curve Flashcards
1
Q
What is supply ?
A
The quantity of a good or service that producers are willing and able to supply at a given price level
2
Q
What is the law of supply ?
A
Direct relationship between price and quantity supplied
3
Q
Give some reasons why the supply curve goes upwards ?
A
As Price increases there is more profit to be made which incentivises producers to produce more
As quantity increases , price increases as they need more money to buy factors of production to cover costs and keep margins
4
Q
What are some non price factors which changes supplu
A
Productivity
Indirect taxation
N.o firms in the market
Tech
Subsidies
Weather
Costs of production
5
Q
A
