Supply and demand

How does a reduction or abolition of an indirect tax affect supply?

• Stabilizes supply
• Decreases supply
• Has no effect on supply
• Increases supply

How do indirect taxes influence supply?

• Stabilize supply
• Decrease supply
• Have no effect on supply
• Increase supply

What underpins the supply of a business?

• Desire to make profit
• Market demand
• Government regulations
• Competition

What does supply reflect in the context of business?

• Cost of production
• Demand for products
• Profit margins
• Number of units producers are willing to offer for sale at different prices

What leads to an increase in supply?

• Higher production costs
• Lower input prices
• Introduction of indirect taxes
• Technological innovations

What is an example of a condition that can lead to a reduction in supply?

• More efficient use of factors of production
• Lower input prices
• Introduction of subsidies
• Higher wage costs per unit

How do changes in costs influence supply?

• Stabilize supply
• Decrease supply
• Have no effect on supply
• Increase supply

What can lead to a decrease in supply?

• Introduction of subsidies
• Higher production costs
• Lower input prices
• Technological innovations

What can lead to lower product costs and an increase in supply?

• More efficient use of factors of production
• Technological innovations
• Introduction of indirect taxes
• Higher production costs

How does an increase in price affect supply?

• Decreases supply
• Increases supply
• Has no effect on supply
• Stabilizes supply