LS9 - Supply Flashcards
1
Q
Supply
A
The quantity of a good or service that firms are willing to sell at a given price over a given period of time
2
Q
Revenue
A
Income that a firm/govt receives
Price x quantity sold
3
Q
Law of supply …
A
As price increases, supply increases, vice versa
4
Q
Shift in supply curve
A
- Changes in prices of related goods
- Firms expectation about future prices - if prices will rise in future, drop supply now so more stock can be sold at a higher price
- Changes in prod costs
- Improvements in technology
- Number of firms in the market
- Climate/weather
