Gov pop quiz

Government Intervention

1. Gov't can affect costs and supply through policy 

   1. Subsidies: gov't payment to support a business or market

   2. Taxes: increase or lower costs

   3. Regulation: increases costs

            Factors Affecting Supply

1. Number of sellers: more sellers means greater supply

2. Expectations - will the economy grow or weaken?

3. Technology - lowers costs

Input prices - if input costs rise, supply decreases as profits fall