Supply

Question	Answer
What is supply	The amount of a good or service that a producer is willing and able to sell at a range of prices
State the law of supply	As the price increases so does the quantity supplied, vice versa, ceteris paribus
Explain price and costs	price: - Is the dollar value for which a good is sold Costs: - Are the expenses involved in producing a good or service
What are the Internal factors affecting supply	-Factors that have direct impact on the firm eg -Production costs -Price of related goods -Improved organization of labor -Staff training -Purchasing of capitol good or technology
What is the effect of non-price factors on supply	If a factor other than price changes the amount a firm can supply will change causing a shift of the supply curve These factors could be either internal or external factors
List some external factors that affect supply	-These factors are outside of the firms control eg. -Law changes- such as quotas or an increase in production costs -Political factors-such as subsidies or changes in tax/GST -Trade-Tariffs and exchange rate changes -Eco-friendly requirements -Culture
Internal flow on effects include...	-Human resources required -Materials needed -New tech etc
Examples of external flow on effects	-Materials quantities needed from suppliers -Finance needed from banks -Amount of tax for government -Product available for retailers

Resource summary

	Created by Tilly Surrey almost 7 years ago