Supply Flashcards
1
Q
what is supply
A
quantity of good or service that produces supply to the market at a given price at a particular time.
2
Q
what relationship between price and quantity in supply
A
direct relationship
price increase=quantity increase
3
Q
factors that effect supply
A
PINTS WC (white man goes to pub and gets...) productivity indirect taxes number of firms technology subsidies weather conditions commodity prices
4
Q
how is consumer confidence affected
A
wealth external crisis (covid19, 008 financial crisis
5
Q
types of supply
A
joint supply: when increase in good x means more is automatically supplied of good y
e.g. beef + leather
when increase in good x, leads to contraction in supply of good y (producers reallocate their production to good x)
e.g. baize and barley
