Flashcards
Supply
Cards in this deck (8)
- 1What is supplyThe amount of a good or service that a producer is willing and able to sell at a range of prices
- 2State the law of supplyAs the price increases so does the quantity supplied, vice versa, ceteris paribus
- 3Explain price and costsprice: - Is the dollar value for which a good is sold
Costs: - Are the expenses involved in producing a good or service - 4What 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 - 5What is the effect of non-price factors on supplyIf 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 - 6List 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 - 7Internal flow on effects include...-Human resources required
-Materials needed
-New tech etc - 8Examples of external flow on effects-Materials quantities needed from suppliers
-Finance needed from banks
-Amount of tax for government
-Product available for retailers
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- Designed to assist in the study preparation for mock exams, 2017. All questions and answers fit the unit content and are provided by a textbook designed for teaching the unit content for this external exam
- Created by
- Tilly Surrey
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