The Determinants Of The Supply Of Goods And Services In A Market 3.3 Flashcards
1
Q
What is the definition of supply ?
A
Supply is the quantity of a good or service that a producer is able and willing to supply at a given price during a period of time
2
Q
Why is the supply curve upward sloping ?
A
If the price increases, it’s more profitable for firms to supply the good, so supply increases
High prices encourage firms to enter the market, because it seems profitable, so supply increases
With larger outputs, forms costs increase, so they need to charge a higher price to cover the costs
3
Q
What factors affect the supply curve ?
PINTSWC
A
Productivity
Indirect taxes
Number of firms
Technology
Subsidies
Weather
Cost of production
