- Cost of production - e.g production costs increase - reduce supply - Profits decline - production may be cut - Government subsidies - payments to encourage to produce more - Imposition of tax/ indirect taxes - increases cost for manufacturer - External shocks - e.g poor harvest - New technology - Improvement - greater efficiency

1.2.2 Supply Flashcards by Mia Goncalves

Supply

Amount of goods that producers are willing to supply
Supply curve -
Movement = Price factor
Shift to left = Decrease in supply 
Shift to right = Increase in supply

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What changes supply

Cost of production - e.g production costs increase - reduce supply
Profits decline - production may be cut
Government subsidies - payments to encourage to produce more
Imposition of tax/ indirect taxes - increases cost for manufacturer
External shocks - e.g poor harvest
New technology - Improvement - greater efficiency

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1.2.2 Supply Flashcards

(2 cards)