facots afecting supply Flashcards
(29 cards)
why do people get into business
to gain profits. wealth power fame
other term for businessmen
kingmakers
the number one reason why businessmen would change prices
to maximize profitability
every change of price elicits a response from the buyers
elasticity
degree of responsiveness of buyers for any price changes
elasticity
Factors that affect supply
price
cost of production
number of producers seller
technological advancement
taste and preferences
occasion
seasonality of products
price expectations
they will supply more of products to get higher profits when the price is high
price
the most important factor
price
it includes expenses such as land, labor, capital and entrepreneur
cost of production
if high supply will be low (expenses)
cost of production
when different sellers sell same fruits or there is same occasion, there will be alot of supplies
no. of sellers producers
when machineries are used
technological advancement
hoarding
price expectations
christams ets
occcasion
tomato vegatbles agricultural sectorr
seasonality of products
producers want to tkae advantage of the market’s demand
taste and prefernces
5 types of elasticity
elastic
inelastic
unitary
perfectly elastic
perfectly inelastic
when the change of quantity of demand/supply is greater than the change of price
elastic
usually from products we want ie jewelry exotc food lucury clothes anditems
elastic
when the change of quantity is less than the change of price
inelastic
it is usually from products we need ie rice
inelastic
when the change of quantity is the same as the change of price
unitary
when the quantity changes infinitely but the price remains the same
perfectly elastic
when the quantity does not change but the price changes infinitely
perfectly inelastic
