Increase
in Supply
The two factors that could cause
the production and supply of fast food to increase over a range of prices
include…
1) The
cost of production and supply are cheaper. this will allow larger sums of supply as it is cheaper, therefor increasing supply.
2) An
increase in government subsidies giving business a business an oppoturnity to create more jobs, allowing more to be produced.
When there is an increase in a
supply over a range of prices, equilibrium price in the market will be lower
Decrease in supply
The two factors that could cause
a decrease in supply over a range of prices include…
1) The
cost for production and supply is more expensive, this may be cause of raw materials and natural resources being more expensive to be used in production.
2) Decrease
in business confidence, therefor having less supply as less will be spent.
When there is a decrease in
supply over a range of prices, equilibrium price in the market will be higher.
