1.2.4 Supply

• What does a supply curve look like?


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• Complementary goods are ones that are ones that are used together so then if the price of one rises, demand for the other will will fall- goods for which there is joint demand
• Supply is the quantity of a product that producers are willing and able to supply at different market prices over a period of time, there is a relationship between price and supply
• An increase in price results in a movement along the curve to the right
• Changes in any factor OTHER than price causes a SHIFT in the supply curve
• A shift in the supply to the left - amount producers offer for sale at every price will be less
• A shift in supply to the right - amount producers wills sell at every price will be more
• What are the non-price factors for shifts in supply?

  P- productivity

  I- indirect taxes

  N- number of firms operating

  T- technology

  S- subsidies

  W- weather

  C- cost of production

  L- legislation
• The supply curve is upward sloping and so as the price rises, quantity supplied should rise causing a movement along the supply curve

  This shows that there is a positive relationship between price and quantity supplied

  This is because firms are profit maximisers so forms will supply more as it becomes more profitable to do so
• Firms selling of equilibrium will meet supply and demand #economic ephiany
• The price at which the quantity supplied is equal to the quality demanded
• Supply is the ability and willingness to provide a good or service at a particular price at a given moment in time
• Movements and shifts of the supply curve:

  • A movement along the supply curve is caused by a change in the price of the good
  • A shift of the supply curve is caused by a change in factors affecting supply