supply

Question 1

supply

Answer 1

the quantity of a good/service producers are willing and able to produce at a given price in a given time period.

Question 2

law of supply

Answer 2

direct relationship between price and quantity supplied

Question 3

profit motive

Answer 3

• direct relationship between price and quantity
• producers supply more when the price goes up
• willingness and ability greater to supply when the price is higher.

Question 4

non-price factors effecting supply

Answer 4

• productivity
• indirect tax
• no. of firms
• technology
• subsidy
• weather
• cost of production

Question 5

individual supply

Answer 5

the supply of one firm or producer

Question 6

market supply

Answer 6

the total supply of the market

Question 7

productivity

Answer 7

if workers become more productive they are producing more in the same period of time, this is going to reduce cost of production and shifting supply curve to the right from s1 to s2.
if productivity reduces cost of production increases as your paying workers the same amount but they are producing less, supply curve shifts to the left s1-s3.

Question 8

indirect tax

Answer 8

tax on production that firms have to pay will increase cost pf production, so if indirect tax increases the supply curve will shift to the left from s1-s3.

Question 9

no.of firms

Answer 9

the more firms that enter the market the supply curve will shift to the right from s1-s2, there would be more supply in the market now.
less firms result in supply curve shifting from s1-s3

Question 10

technology

Answer 10

increases willingness and ability to supply or decreases the willingness and ability to supply by effecting cost of production. improving tech reduces cost of production and shifts supply curve to the right from s1-s2.

Question 11

subsidy

Answer 11

a money grant given by the government to producers to lower costs of production and to encourage an increase in output. so if a subsidy is given then the supply curve would shift to the right because cost of production have been lowered.

Question 12

weather

Answer 12

good weather would allow supply of ice-cream,holidays, outings to increase, bad weather would decrease these but could possibly increase the purchase of raincoats, umbrella so depending on the what good is supplied weather can cause right and left shifts.

Question 13

cost of production

Answer 13

-transport
-labour
-oil
-raw materials
-utilities
-regulations
if any of these increase then the supply curve would shift to the left from s1-s3, if any of these decrease then the supply curve will shift to the right from s1-s2