2.4 Supply
[!def]
The willingness and ability of firms to supply goods and services at a given price
The law of supply
[!def]
There is a direct relationship between price and good supplied
Profit incentive
higher price means higher profit, motivating firms to produce more
Production costs
Production costs increase when amount of products increase
Rise in supply
- demand
- technology
- resources
- cost
- season factors
- policy
- competition
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