Factors Affecting Supply: Availability of Resources
TITLE
Explain one factor that influences the supply of a product.
ESSAY
Title: Factors Influencing the Supply of a Product in Business Studies
Introduction
💥 Brief overview of the importance of understanding supply factors in business
💥 Introduction of the key factor: Price
Price as an Influencing Factor
💥 Definition of price as a determinant of supply
💥 Relationship between price and supply: increase in product price leads to increased supply; decrease in price leads to decreased supply
Application of Price Variation
💥 Impact of speculative prices on current supplies
💥 Effect of changing cost of production on supply levels
Other Influencing Factors
💥 Natural conditions (e.g., weather, disasters)
💥 Transport constraints and interruptions
💥 Government actions (e.g., taxes, subsidies)
💥 Role of new technology in increasing efficiency and supply
💥 Effects of international incidents and foreign government interventions
💥 Influence of demand on supply levels
Case Study: Price Variations
💥 Detailed example showcasing how price fluctuations impact the supply of a specific product
Conclusion
💥 Recap of the key factors influencing supply in business studies
💥 Emphasis on the dynamic and interconnected nature of supply factors
This structured essay provides a clear breakdown of the factors that influence the supply of a product in business studies, with a special focus on the critical factor of price. Each key influencing factor is outlined and supported with examples and real💥world applications to demonstrate a comprehensive understanding of how these factors shape supply dynamics.
SUBJECT
BUSINESS STUDIES
LEVEL
A level and AS level
NOTES
Explain one factor that influences the supply of a product. AO1 Knowledge and understanding · Price · Cost of production · Natural conditions · Transport · Government action · New technology · International incidents · Level of demand One factor that influences the supply of a product is the price the product commands in the market (1 mark ´ 1) 3 9609/12 Cambridge International AS & A Level – Mark Scheme PUBLISHED May/June 2023 © UCLES 2023 Page 10 of 32 Question Answer Marks 1(b) AO2 Application The influencing factors affecting the supply of a product are considered to include the following: · Price variations – supply likely to increase as product price rises and fall as product price falls. · Speculative prices – anticipated future price rises may reduce current supplies. · Cost of production – as costs rise supplies may reduce💥as costs fall supplies may increase. · Changes in natural conditions – Weather, seasons, holidays, disasters, droughts, monsoons may reduce supply. · Transport – constraints, lack of lorry drivers may interrupt supplies. · Government action – taxes on products may reduce supply – subsidies may increase supply. · New technology – may lead to greater efficiency – lower costs and increased supply. · Foreign Government actions/interventions affecting the supply chain – new trade restrictions. · International incidents – wars that affect the supply chain. · Level of demand – business will produce and supply more if the demand increases. · Increased demand reduces stock availability – supply will decrease. · Developed application of one factor – the price variations of a product – the supply is likely to increase as the price of the product rises in the market and falls as the price of the product falls in the market.