1.3.2 Supply Flashcards
1
Q
What is Supply?
A
The amount of a good or service that producers are willing and able to provide at a given price at a given time.
2
Q
How do producers decide how much they are willing to supply?
A
Based on the cost of production and the amount of profit they can make.
3
Q
What relationship does price and quantity have in supply?
A
Positive- When one rises the other rises
4
Q
What does the supply curve show?
A
The relationship between price and quantity supplied
5
Q
What are the factors that can shift supply?
A
- Change in the cost of production
- The introduction of new technology
- Indirect taxes
- Subsidies
- Change in the number of firms in an industry
- External shocks
