supply

Question 1

what is supply

Answer 1

the amount of a product that suppliers will offer to the market at a given price

Question 2

supply changes

Answer 2

in some cases supply will not change no matter what price is. for example the number os seats at a concert will not change

Question 3

what factors affect supply

Answer 3

1. changes in the cost of production
2. introduction of new tech
3. indirect taxes
   4, gov subsidies
   5, external shcoks

Question 4

changes in the cost of production

Answer 4

such as wages, raw materials, energy, rent and machinery

Question 5

introduction of new tech

Answer 5

making production process more efficient so supply increases

Question 6

indirect taxes

Answer 6

eg- duties os cigaretts, alchol and fuel
-a tax increases the cost of production therefore supply decreases

Question 7

government subsidies

Answer 7

usually involves a payment by the government to suppliers that reduce their costs of production and encourages to increase their output

Question 8

external shocks

Answer 8

such as world events and wars ( decrease) and weather effects either decrease or increase