Theme 1 - Supply

Question 1

What is supply

Answer 1

Supply is the total amount of a good or service that producers are willing and able to sell at different prices over a certain time.

Question 2

Factors affecting supply

Answer 2

1. Production Costs: If the cost of materials or labor increases, supply may decrease because it’s more expensive to produce goods.
2. Technology: Advances in technology can make production more efficient, increasing supply.
3. Number of Suppliers: More suppliers in the market can increase overall supply.
4. Government Policies: Regulations, taxes, or subsidies can impact how much is supplied.
5. Expectations: If producers expect prices to rise in the future, they might supply less now to sell more later.