4 Supply Curve Flashcards
1
Q
What happens if there is a rise in production costs?
A
If there is a rise in production costs the quantity supplied will fall at a given price supply shift left
2
Q
What happens if supply is fixed?
A
The supply of a product is fixed the supply will be vertical
3
Q
Factors that affect the supply curve
A
Natural Factors
Production costs
New technology
Subsidies
Indirect taxes
4
Q
Define indirect taxes
A
Taxes that are charged on spending
5
Q
Define consumption
A
amount of goods and services used over a period of time.
6
Q
Subsidy
A
Money paid by government to make prices low,to increase production of good
