Supply Factors
Students often struggle to remember factors that can influence the supply curve in different markets. As you read over the list below, you should try to find a way to associate each change with an actual market in the Australian economy. This will enable you to make a microeconomic link between the factors that you are learning, and the outcome in the market.
| Factors which may lead to an increase in supply |
- An increase in the productivity of Australian workers
- A decrease in wage rates or other production costs (such as raw materials)
- An improvement in the way in which technology is used within the market
- Improved weather conditions
|
| Factors which may lead to a decrease in supply |
- Any decrease in the rate of productivity of Australian workers
- An increase in wage rates or other costs of production
- A decrease in the use of technology, or a decrease in the effectiveness of the technology that is used
- Natural disasters such as a drought, tropical storms, earthquakes or a tsunami
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Unit 1
Unit 3
