Supply Curves
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6 Terms
Define Supply
The amount of a good/service that a producer is willing and able to supply at a given price in a given time period
What are the two parts of a Supply Curve?
Price and Quantity Supplied (QS)
What does the Law Of Supply state?
There is a positive (direct) relationship between quantity supplied and price - ceteris paribus
When Price Rises, QS Rises
When Price Falls, QS Falls
What leads to a movement Along the supply curve?
A change in Price only, therefore changing the Quantity supplied.
What is a determinant of supply?
A factor that will change the supply of a good/service, irrespective of the price level.
Changes to the costs of production
Changes to indirect taxes and subsidies
Changes to technology
Changes to the number of firms
Weather events
Future price expectations
Goods in joint and competitive supply
What leads to a Shift in the entire supply curve?
A change to any of the determinants
e.g Changes to the costs of production
