Supply of Goods and Services (AQA A-Level Economics): Flashcards

Total amount all producers willing & able to sell at various prices

Upward (positive relationship between price & quantity supplied)

Movement = price change; Shift = conditions of supply change

Determinants of supply other than the product's own price

Supply decreases (shifts left)

Supply increases (shifts rightward/downward)

Tax levied as a percentage of a good's price (e.g., VAT)

Fixed amount charged per unit sold, regardless of price

$\frac{\% \text{ change in Qs}}{\% \text{ change in price}}$

$PES > 1$ (quantity supplied responds more than proportionately)