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What happens to supply when production costs rise, and why?
A
Improved technology raises profit per unit by lowering production costs.
B
Supply shifts left because each unit becomes more expensive to produce.
C
When a subsidy is introduced, the supply curve shifts right.
D
Supply of the original crop falls as fields are switched to the more profitable crop.
Card 1 of 21
2.3.5 Causes and consequences of supply changes Flashcards
21 flashcards on OCR GCSE Economics 2.3.5 Causes and consequences of supply changes: the key terms, formulae and calculations you need to recall for Component 01 and Component 02.