Supply Flashcards
1
Q
Supply
A
The quantity of a good or service that producers are willing and able to sell at each and every price at a point in time
2
Q
Which way does a supply graph go?
A
Supply sources skywards
3
Q
Factors that affect supply(CNEWS)causes a shift in the market
A
- Cost of production- decrease in cost of production increases supply
- Number of firms- The more firms in the market the more the supply
- Expectations- looking for the right time to sell, when the product is at its peak
- Weather- Bad Weather for growing crops decreases supply
- Subsidy/tax- increase in subsidy will increase supply however increase in tax will decrease supply. Tax ONLY affects supply NOT DEMAND
