Factors Affecting Market Supply (HSC SSCE Economics): Flashcards
📚Flashcards
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Practise the cards
10 cards from this deck
Define supply
Define supply
Quantity producers are willing & able to offer at various prices
Define market supply
Define market supply
Combined total supply from all firms in an industry
6 factors affecting market supply
6 factors affecting market supply
Price, other prices, technology, factor costs, quantity, climate
Effect of future price expectations on supply
Effect of future price expectations on supply
Higher expected prices increase current supply levels
Define substitution in production
Define substitution in production
Producers shift resources to more profitable products
Technology's effect on supply
Technology's effect on supply
Increases supply via efficiency & lower costs
Define factor costs
Define factor costs
Prices for labour, raw materials, land, & capital equipment
Effect of rising factor costs on supply
Effect of rising factor costs on supply
Reduces supply as production becomes more costly
Effect of more suppliers entering a market
Effect of more suppliers entering a market
Increases total market supply
Climate's impact on agricultural supply
Climate's impact on agricultural supply
Droughts/floods reduce supply; weather affects production