Supply

• What is the learning objective related to supply in this material?


  Recall, explain, and evaluate the factors affecting supply.
• What is the relationship between price and supply?


  Price and supply have a direct relationship.
• What does supply refer to in economic terms?


  Supply is the amount that sellers are willing and able to sell at any given price.
• Who are suppliers in the context of this material?

  Suppliers are businesses that provide resources.
• Give an example of a supplier mentioned in the material.

  A baker needs a flour supplier.
• What are the factors affecting supply?

  • Changes in the cost of production
  • New technology
  • Indirect taxes
  • Government subsidies
  • External shocks
• How does an increase in minimum wage affect supply?


  It increases the cost of production, leading suppliers to raise prices.
• What is the effect of new technology on supply?


  New technology allows suppliers to produce at a lower cost, increasing profit incentive.
• How do indirect taxes affect supply?


  Higher taxes lead companies to sell at higher prices to maintain profit.
• What are government subsidies?

  Payments given to firms to encourage them to supply more competitively.
• What is the impact of external shocks on supply?


  External shocks can decrease supply, leading to increased prices.
• What are examples of external shocks that can affect supply?


  • Wars
  • Pandemics
  • Natural disasters
• What is the visual representation of shifts in demand and supply?


  • Demand shifts downwards
  • Supply shifts upwards