1.2.2 - Supply 0.0 / 5 ? Business1.2.2 - Supply1.2 - The MarketASEdexcel Created by: MASTERCHICKEN01Created on: 18-03-21 10:32 What is Supply? Supply is the amount of product that suppliers will offer to the market at a given price. 1 of 5 Factors affecting Supply Changes in the cost of production Introduction of new technology Indirect Taxes Government subsides - support for suppliers External shocks 2 of 5 As price increases, the supply of a good will also increase As businesses believe they can make more money 3 of 5 Supply curves The Supply Curve will always slope UP because the Quantity supplied will increase as price rises 4 of 5 Any of the factors can create a shift in Supply Higher prices mean more profit per item increases, so the incentive to firms to supply increases therefore supply shifts right 5 of 5
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