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Economics-A-level-Aqa

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  1. 1-economic-methodology-and-the-economic-problem
    4 主题
  2. 2-individual-economic-decision-making
    4 主题
  3. 3-price-determination-in-competitive-markets
    10 主题
  4. 4-production-costs-and-revenue
    11 主题
  5. 5-perfect-and-imperfectly-competitive-markets-and-monopolies
    12 主题
  6. 6-the-labour-market
    7 主题
  7. 7-income-and-wealth-distribution
    4 主题
  8. 8-the-market-mechanism-market-failure-and-government-intervention
    16 主题
  9. 9-measuring-macroeconomic-performance
    5 主题
  10. 10-how-the-macroeconomy-works
    6 主题
  11. 11-economic-performance
    8 主题
  12. 12-financial-markets-and-monetary-policy
    6 主题
  13. 13-fiscal-and-supply-side-policies
    5 主题
  14. 14-the-international-economy
    16 主题
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Real-World Example One: A Decrease in Supply

  • In 2023, the supply of UK-grown tomatoes declined as a consequence of rising energy costs

    • Energy prices increased due to supply chain issues, causing the cost of operating greenhouses to rise

Diagram: Supply of UK Tomatoes

Graph showing a leftward shift in supply from S1 to S2, indicating a decrease in quantity from Q1 to Q2 at a constant price P1.
A fall in supply of tomatoes shifts supply curve to the left 

Diagram analysis

  • An increase in the costs of production from imported energy results in a shift left of the entire supply curve from S1 → S2

    • The price remains the same at P1

    • The quantity supplied falls from Q1 → Q2

Real-World Example Two: An Increase in Supply

  • Advances in technology have led to an increase in the supply of lettuce

    • Greater mechanisation and innovations in genetically modified food increase productivity and output

Diagram: Supply of Food

Supply and demand graph showing a rightward shift from supply curve S1 to S2, increasing quantity from Q1 to Q2 at a constant price P1.
A rise in the supply of lettuce the shifts supply curve to the right 

Diagram analysis

  • Improvements in farming technology cause a shift to the right of the entire supply curve from S1 → S2

    • Price remains the same at P1

    • The quantity supplied rises from Q1 to Q2

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