What are the key factors that can cause a change in market supply for different goods and services?
This short revision video takes you through the key points to help your understanding of the price mechanism.
Supply is the quantity of a good or service that a producer is willing and able to supply onto the market at a given price in each time period.
Market supply sums the supply of all individual producers in a market.
The key to understanding market supply is to focus on the following factors: (i) Costs of Production, (ii) External Shocks (iii) New Technology (iv) Government Taxation & Subsidies and (v) the Number of and Scale of Producers in the market.
For example, an outward shift in market supply might happen if / with:
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