SUPPLY AS 90985

Concept Map Flow-On effects Producer Decisions Definition Law Factors SUPPLY Definition Law Types * Individual * Market Factors Price Non-Price Internal External Producer Decisions Flow-On effects

DEFINITION of SUPPLY DEMAND “ The quantity a producer is willing and able to sell at a range of prices at any given time” consumer buy

Law of Supply DEMAND “ An increase in Price will lead to an increase in quantity Supplied and vice versa, ceteris paribus” decrease demanded

FACTORS AFFECTING SUPPLY PRICE

Movement along the supply curve – UP or DOWN PRICE……causes Movement along the supply curve – UP or DOWN Change in QUANTITY SUPPLIED

NON – PRICE FACTORS INTERNAL EXTERNAL

INTERNAL FACTORS Cost of Production Technology Productivity Price of other related goods produced by the firm – eg Lettuce & celery; Bus and trucks; Laptops & P.C’s

External Factors P. E. L. T. - C POLITICAL Subsidies Indirect taxes – eg GST, excise

External Factors ENVIRONMENTAL Acts of nature Weather Sustainability

External Factors LEGAL Compliance Resource consent Zoning

External Factors TRADE Tariffs Quota Trade agreements

External Factors CULTURAL OBLIGATIONS Resource ownership