1.2.4 - Supply

• People are able to work from home, reducing the need to live in high cost areas.
• The UK exports over 50,000 goods and services.
• The top 5 areas of production in the UK are motor vehicles, petroleum refining, aircraft, engines and parts, pharmaceutical products, and food products.
• Factors affecting supply in the UK include the price of the good, cost of production, technology, government legislation and policies, weather, and competition.
• The supply curve can move along the curve and not shift.
• The supply curve can shift due to factors such as an industry-wide fall in supply costs, the entry of new suppliers into a market or industry, and widely-adopted process innovations that lower supply costs.
• Government subsidies or financial support to producers can cause the supply curve to shift.
• Weather can affect the supply of some goods and services, for example, agriculture.
• Competition can affect prices of other goods, such as complements and substitutes.
• Joint supply occurs when the production of one good causes the production of another good.
• The more qualified and skilled labour is, the more output they are able to produce which can increase supply.
• Other methods of increasing supply include higher wages, holiday + sick pay, and relaxing immigration laws.
• The growing roles of automation and AI may make labour less relevant.
• The number of firms in an industry can affect supply.
• Favourable climatic conditions improving yields for farmers
• Impact of existing firms scaling up production in the long run
• Effects of a market being opened to trade with lower cost imports
• Factors causing inward shift in supply
• Rise in the cost of raw materials, components and energy
• Government imposing an indirect tax on suppliers
• Government withdrawing a subsidy to producers
• Unfavourable weather conditions reducing farm yields / delaying production
• A rise in unit wage costs perhaps caused by labour shortages
• The exit of some suppliers from an industry
• Supply in action
• Price indices for building
• Annual change of the price for building materials in the UK (per cent)
• Gravel, sand, clays & kaolin (Including the aggregate levy)
• Ready-mixed concrete
• Concrete reinforcing bars
• Imported sawn or planed wood
• Imported plywood
• Builders woodwork
• Fabricated structural steel
• Metal doors and windows