| What is Supply? | -The Quantity of Goods/Service that Produces Supply to the Market at any Given Price, at a Given Time |
| What does a Supply Curve show? | -The Relationship between Price and Quantity Supplied. Any Point along the Curve will give you a Quantity X and a Price Y |
| Why do Supply Curves slope Upwards? | -Ceteris Paribus, Producers and Sellers want to Maximise their Profits, and so, the Higher the Price, the Higher the Profit
-So Therefore Higher Profit gives an Incentive to expand Production and Increase Supply. That's why Quantity Supplied Increases as Price Increases [More than the Cost of Supplying More] |
| How can Changes to the Cost of Production lead to a Shift in the Supply Curve? [And Improved Tech] | -Increase in of the Cost of Production [Wages] will lead to Less Profits being made and Lead to a Left Shift.
-Had it Decrease, and then more Profits would be made leading to More Profits being made and a Shift to the Right
-If Technology Improves then Supply can be Increases as Cost of Production is Lowered. |
| How can Changes to the Productivity of Factors of Production lead to a Shift in Supply Curve? | -More Productivity of a Factor of Production leads to more Output from a Unit of Factor - meaning more is Supplied and the Curve shifts Right |
| How can Indirect Taxes & Subsidies lead to a Shift in Supply Curve? | -Indirect Tax basically Increases Costs for a Producer.
-This lead to Less being Supplied and the Curve shifts to the Left.
-Subsidy will Encourage Production and Reduce the Cost for the Producer, leading to more Supply and a Rightward Shift |
| How can Changes to the Price of Other Goods Lead to a Shift in Supply Curve? | -If the Price of Product X had Increased, then a Firm may Switch Production from a less Profitable 'Good Y' to Increase the Production of X. This allows the Firm to make the most of the Higher Prices and enjoy more Profit
-The Supply of Goods Y falls.
-This is NOT JOINT SUPPLY |
| How can the Number of Suppliers lead to a Shift in Supply Curve? | -More Suppliers in the Market will lead to a Rightward Shift in the Market. The Opposite is True |
| What is Joint Supply? | -When Producing one Good/Service Involves the Production of Other Goods. This is when Markets are Interrelated.
-If Crude Oil is Refined to Petrol, this will also Increase Butane. |
| If the Price of a Product Increases, and that Product has Joint Supply, what Happens? Make an Example with Petrol | -This will lead to more Supply of the Product that had the Price Increased.
-If Petrol had a Price Increase, the Level of Drilling will Increase and the Supply of Petrol and Joint Products will Increase too. [Butane] |
| What is Competitive Supply? | -This is when 2+ Alterative Goods can be made from the Same Factors of Production.
-Land may be use to Grow Potatoes, or Wheat. So its up to the Producer to Decide |
