Supply Flashcards
1
Q
What is supply?
A
- the quantity of goods that sellers are willing and able to sell at any given price
2
Q
What does the supply curve show?
A
- the relationship between the price and quantity supplied
—> higher prices mean producers want to increase supply —> more profits
3
Q
What are some the factors that can shift supply?
A
- regulation and bureaucracy can increase costs
- subsides offered by the gov can reduce overall costs
- indirect taxes can increase costs
- other factors (e.g. weather for the agricultural markets)
