Economics supply

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  • Law of supply
    • Economics- Supply
      • Shifts of the supply curve
        • Production costs- include wages, raw materials, rent and energy costs
        • Productivity of labour- This refers to the output per worker per hour. This can be affected by the training offered and the quality of capital equipment used by workers
        • Taxes on businesses- excise duties, VAT and business rates
        • Production subsidies  these are government grants to firms to encourage grater production
        • Technology- improvements in technology may lead to increased productivity of firms
      • Shape of the supply curve
        • It is upward sloping
        • Increase in supply shift to the right
        • Decrease in supply shift to the left
      • Supply- the quantity of a good or service that firms plan to sell at given prices in a particular time period
    • The law of supply states that as price increases the quantity supplied will increase. This is a positive relationship


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