Supply

Question 1

What is supply

Answer 1

Supply refers to the amount of a good or service firms are willing to sell at a given price over a given time period

Question 2

What does the law of supply state

Answer 2

If there is an increase in price, there will be an increase in supply
If there is a decrease in price there will be a. Decrease in supply

Question 3

What are the conditions of supply

Answer 3

• production costs -> increase in production costs leads to lower supplied
• no of firms in the market -> more firms -> more supplied
• Changes in the price of related goods
• weather conditions -> poor weather -> lower can be produced and supplied
• firms expectations of price -> if they believe prices will fall -> they will produce less