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1.2.2 Supply - Coggle Diagram

- - - - If the cost of the production increases due to a rise in raw materials, or rise in minimum wage:
      - The business may decide to produce less
      - Prices may have to go up
      - The product will have lower sales
    - - New tech means more goods can be supplied:
      - Automation of production means supply can increase
      - Mass production methods improved to increase capacity
      - Using new tech means costs can be reduced and that means that they can offer lower prices to the customer
    - - When tax increases, supply will decrease
      - VAT/ customs and excise tax are all indirect taxes and when applied to goods it makes supplying them less attractive. This can lead to a decrease in supply.
    - - A payment from the government to encourage more suppliers to enter the market and supply more. With a subsidy there is an increase in supply as costs have been lowered
      - e.g The government pays subsidies to wind farm manufacturers to make turbines offshore in the UK. This adds about £18 a year to UK households energy bill.
    - - changes in oil and gas prices
      - war
      - weather problems - particularly crops
      - changes in labour laws