supply

• factors which effect supply- cost of production, indirect taxes, subsides, new technology, weather conditions and external shocks
• change in cost production- clothing manufacturer: an increase in energy and labour costs will increase the costs of making each item- supply curve for clothing shifts to the left
• new technology- leads to efficient production techniques allows the business to lower costs leading to a increase in supply
• cost of production- if teh cost increases than profits will decrease causing a fall in supply
• indirect taxes if tax increases on goods than this will increase the cost for the producer leading to supply to reduce
• subsides- money given from government to help a business, wanted a secure supply of food so government gave farmers subsides
• external shocks- war- country focuses on getting many people in the armed forces reducing factory workers leading to supply reducing