ILO
a) Factors leading to a change in supply:
- changes in cost of production
- introduction of new technology
- indirect taxes
- government subsidies
- external shocks
a) Factors leading to a change in supply:
- changes in cost of production
- introduction of new technology
- indirect taxes
- government subsidies
- external shocks
Supply chain
Put these in order of where you think they should be in the supply chain
Supply - is the quantity of product that producers are able to deliver within a specific time period
Factors affecting supply
What factors do you feel will cause a change in supply of products?
Think of as many as you can whilst watching the following DHL supply chain video |
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Changes in the cost of production
New technology
What would affect would new machinery have on supply? What will happen to productivity and the cost per unit? What might be the problems associated to the introduction of new technology? http://www.bbc.co.uk/news/technology-36376966 |
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Indirect taxes
Taxes that are levied by the government onto goods and services
What taxes are there that may affect the supply of a product? What will this do to the price of goods and services? What will companies now do? How will this affect price? |
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Government subsidies
The reverse of taxation, governments provide a financial incentive to the business to supply a product or service
Why do governments offer subsidies?
What does this encourage business to do? What affect will this have on supply? |
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External shocks
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What caused the price crash of copper that can be seen around the 2008/2009 time?
What issues would this have caused for businesses like car manufacturers? What impact would this have on supply? What other external shocks can you think of that may cause supply? (Something a business has no control over) |