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Chapter 14 - Coggle Diagram
Chapter 14
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Factors of Supply
Tax the government tax basically everything apart from cash in hand jobs and art, but they do this to raise revenue and if the tax increases on certain products for instance alcohol and sugary drinks then the supply of them will fall because it costs more to produce them. Either that or the price will rise which means there is less demand for it.
Price of other products is known as competitive demand so if the competitors are using an alternative product that is better than yours then the supply of your product will have less demand and could be discontinued
Cost a fall in costs will make supply rise. Because if the production cost and the cost of supply falls then they can afford to supply more products. If the costs of the business rise then they won't be able to supply as much.
Subsidy the government might want to encourage the supply of certain products such as organic fertilizer because they think it might be beneficial to the farming industry and to the environment.
Price, the relationship between price and demand is the opposite of price and demand, when the price is low the business will supply less of that product because it is less profitable than other products that can make more money
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