Factors Affecting Supply - SS1 Economics Past Questions and Answers - page 1
What is the relationship between supply and price?
Positive
Negative
Zero
It depends on the good or service
What is one factor that can influence supply?
Consumer preferences
Government expenditures
Production costs
Interest rates
What can technological advancements do to supply?
Increase it
Decrease it
Have no effect
None of the above
What impact can natural disasters have on supply?
Increase it
Decrease it
Have no effect
None of the above
What is one government policy that can affect supply?
Education funding
Immigration policy
Subsidies to producers
Healthcare reform
How can input prices affect supply?
Increase it
Decrease it
Have no effect
None of the above
Discuss 3 factors that affect supply and explain how they can shift the supply curve.
3 factors that affect supply and explain how they can shift the supply curve include:
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Input Prices: The price of inputs, such as labor, raw materials, and energy, can affect supply. When input prices increase, the cost of production increases, leading to a decrease in supply. When input prices decrease, supply increases, as the cost f production decreases.
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Natural Disasters: Natural disasters, such as floods, earthquakes, and hurricanes, can disrupt production and supply chains. In such events, the supply of goods and services is often reduced, leading to higher prices.
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Government Policies: Government policies, such as taxes, subsidies, and regulations, can impact supply. For example, subsidies to producers can lower their production costs, leading to an increase in supply. Taxes on production or imports can increase the cost of production, leading to a decrease in supply.