gcse economics - demand and supply - changes in supply
It is possible that supply may change for reasons other than price
INCREASE IN SUPPLY OF A GOOD
1. Cheaper raw materials (more profitable)
2. More efficient production
3. Better productivity
4. New technology
DECREASE IN SUPPLY OF A GOOD
1. More expensive raw materials (less profitable)
2. Less efficient production
3. Poor productivity
4. Poor weather / harvest
SUPPLY INCREASE ON A DIAGRAM
In the example above producer(s) have increased their supply of a good.
It may be because raw materials are cheaper and they believe that they
can make more profit on each good
or it could be because they have better technology.
The supply curve has SHIFTED from S1 to S2
ACTION
A Again do the same for a fall in supply where the supply curve shifts to the left
These GCSE Economics revision notes have been kindly provided by Peter Davies of Mill Hill School, Ripley Keep Up-todate with your GCSE Economics - Subscribe Free to Economics in the News by Email
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