Supply Curve

Question 1

What does the Supply Curve show us?

Answer 1

The amount producers are willing and able to supply at a given price

Question 2

What are the Factors that affect the Supply Curve?

Answer 2

• Changes in the Cost of Production (CoP)
• Natural Factors eg, the effect of weather on crops
• Government taxes and subsidies
• Technology

Question 3

What is supply?

Answer 3

Is the quantity of goods sellers are prepared to sell at any given price over a period of time.

Question 4

What will a fall in PRICE lead to?

Answer 4

Lead to a FALL in the QUANTITY SUPPLIED

Question 5

What will changes in of the Conditions of Supply lead to?

Answer 5

Changes in the Supply Curve.

Question 6

What are the Conditions of Supply?

Answer 6

Are factors which cause Supply of a product to change.

Question 7

What will a rise in the COSTS OF PRODUCTION lead to?

Answer 7

A decrease in supply

Question 8

If technology is improved what happens?

Answer 8

• Reduces Cost of Production (CoP)

- Better Production efficiently

Question 9

How does the Price of Other Goods affect Supply?

Answer 9

Changes in Price of certain goods can affect the supply of other goods.