supply

• What is supply in economics?

  Ability and willingness to provide goods
• What causes movements and shifts of the supply curve?

  • Movement along the curve: change in price
  • Shift of the curve: change in supply factors
• What is the difference between movements along the curve and shifts of the curve?

  Movements are price changes; shifts are supply factor changes
• What are the conditions of supply that can cause shifts in the supply curve? (hint - PINTSWC)Costs of production

  • productivity
  • indirect tax
  • number of firms
  • technology
  • subsidies
  • weather
  • cost of production

  additional - price of other goods (joint/competitive supply)
• How do costs of production affect supply?

  Higher costs decrease supply; lower costs increase supply
• What is joint supply?

  Production of one good causes another good's production
• What happens when the price of beef rises?

  Increase in leather supply due to joint supply
• What is competitive supply?

  Production of one good prevents the supply of another
• How does bad weather affect agricultural supply?

  Decreases supply, shifting curve to the left
• How does new technology impact supply?

  Reduces production costs, shifting curve to the right
• What happens to supply during wars or natural disasters?

  Supply decreases due to less efficient technology
• How does government legislation affect supply?

  New laws can increase or decrease supply
• What is the effect of indirect taxes on supply?

  Taxes decrease supply by increasing costs of goods, E.G VAT (tax on normal goods) or excise duty tax (additional tax added onto specific items like cigarettes/alcohol)
• What is the effect of subsidies on supply?

  Subsidies increase supply by reducing costs of production as government give payments / grants.