Concept 2 : Supply

Question 1

What is supply?

Answer 1

The willingness & ability to sell a product

Question 2

Why would a company choose to make and sell a product at a higher price?

Answer 2

More opportunity for profit maximisation

Question 3

What is the relationship between Price & Supply?

Answer 3

Positive

Question 4

Describe the positive relationship between Price & Supply

Answer 4

When there is an increase in price, the amount supplied will also increase

Question 5

What are the 4 general factors for causing a change in supply?

Answer 5

Technology, Discoveries & Depletions
Taxes & Subsidies
Other Products
Weather & Geography

Question 6

Fracking is an example of what factor for changing supply?

Answer 6

Technology

Question 7

Here is a list of factors. Decide whether they effect a change in demand, supply or both: 
A.Taxes & Subsidies 
B. Related  Products 
C. Advertising
D. Other Products (Substitutes)
E. Technology
F. Geography 
G. Income
H. Population
I. Tastes

Answer 7

A. Both
B. D
C. D
D. S
E. S
F. S
G. I
H. D
I. D