Supply

Question 1

Define SUPPLY

Answer 1

Supply is the amount of a good that suppliers are willing and able to sell at a set price at any given time.

Question 2

What are the non price factors affecting supply?

Answer 2

• Costs of production
• External shocks
• New technology
• Indirect taxes
• Subsidy

Question 3

Define INDIRECT TAXES

Answer 3

An indirect tax is a tax imposed by the government on consumer spending e.g. VAT

Question 4

Define a SUBSIDY

Answer 4

A subsidy is a government issued grant given to producers that acts as an incentive to product more of a product.