Factors Leading to a Change in Supply (Edexcel A-Level Business): Flashcards
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Definition of supply in economics
Definition of supply in economics
Quantity producers willing & able to make available at given price
Cause of movement along supply curve
Cause of movement along supply curve
Price changes only
Cause of shift of supply curve
Cause of shift of supply curve
Changes in factors other than price
Components of production costs
Components of production costs
Wages, raw materials, energy, rent, machinery expenses
Effect of rising production costs on supply
Effect of rising production costs on supply
Reduces quantity supplied; shifts supply curve left
Effect of new technology on supply
Effect of new technology on supply
Increases supply; shifts curve right (improves efficiency)
What are indirect taxes
What are indirect taxes
Taxes on spending (e.g., VAT, excise duties on petrol, alcohol)
Effect of indirect taxes on supply
Effect of indirect taxes on supply
Shifts supply left (additional cost to businesses)
Definition of government subsidy
Definition of government subsidy
Financial grant from govt to producers to encourage production
Five key factors that shift supply curve
Five key factors that shift supply curve
Costs, technology, indirect taxes, subsidies, external shocks