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supply
amount of a product that suppliers make available to the market at any given price in a given period of time
factors affecting supply
changes in the costs of production
introduction of new technology
indirect taxes
amount of government subsidies
effect of costs of production on supply
if the changes in the costs of production increase supply decreases
how does the introduction of new technology affect supply
the introduction of new technology decreases the costs of production so supply increases
effect of indirect costs on supply
indirect costs increase the cost of production decreasing supply
governement subsidies
a grant given to producers usually to encourage the production of a certain product or service
effect of governement subsisidies on supply
more governement subsidies will decrease the costs of production and the supply will increase
external shocks examples
world events
weather
government
price realted goods or services
external shocks
factors beyond the control of business which can have an effect on the supply
how do external shocks in general affect the supply
external shocks decrease availability so the costs of production will increase
→ supply decreases
worlds events affect on supply
as the number of world events increases the uncertainty of supply will increase
effect of the weather on supply
good weather will decrese the costs of production increasing supply and vice versa
how does the governement affect supply
the government directly influences interest rates,if they increase borrowing becomes harder so the costs of production will increase
→ decreasing supply
effect of the prices of related good/ substitutes on supply
if there are cheaper products/substitutes present in the market the demand will decrease with the large supply already present in the market
long story short it depends on the case study good luck
