1. SUPPLY
AS 90985

2. 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

3. 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

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

5. FACTORS AFFECTING SUPPLY
PRICE

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

7. NON – PRICE FACTORS
INTERNAL
EXTERNAL

8. 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

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

10. External Factors
ENVIRONMENTAL
Acts of nature
Weather
Sustainability

11. External Factors
LEGAL
Compliance
Resource consent
Zoning

12. External Factors
TRADE
Tariffs
Quota
Trade agreements

13. External Factors
CULTURAL OBLIGATIONS
Resource ownership