Unit 5 - Supply Flashcards
1
Q
Def: supply
A
Amount of a product that suppliers make available to the market at a given price over a given period of time
2
Q
Def: supply curve
A
A line going up drawn on a graph
Y axis price x axis amount supplied
Shows how much of a good sellers are willing to supply at different prices
3
Q
factors leading to change in supply (5)
A
- cost of production
- into of new tech
- indirect taxes VAT
- government subsidies - grants to help fund
- external shocks
4
Q
Def: subsidy
A
Grant given to producers to encourage production of a certain good
