Page 96 - F1 - AB Integrated Workbook STUDENT 2018-19
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Chapter 7
Supply
4.1 Supply
Supply is the amount that producers are willing and able to produce at a given price.
4.2 Factors affecting supply for a good
Price As P, supply due to cost considerations
Prices of other goods Better to make them instead?
Cost changes e.g. new technology, greater efficiency, VAT
Success of harvests Especially agricultural goods
4.3 Changes in the factors affecting supply
Changes in price Changes in the conditions of supply
Leads to movements along the curve Leads to movements of the curve
P P
P – Expansion S 2
S
S 1
P – Contraction Shift in supply
Q Q
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