Supply and Factors Influencing Supply

    OCR
    GCSE

    Analysis of the quantity of goods or services producers are willing and able to bring to market at a given price level over a specific period. Candidates must distinguish rigorously between movements along the supply curve caused by price changes (extensions/contractions) and shifts of the curve caused by non-price determinants (PINTSWC). Mastery requires application of the profit motive, analysis of costs of production, and evaluation of Price Elasticity of Supply (PES) in both the short and long run.

    0
    Objectives
    4
    Exam Tips
    3
    Pitfalls
    4
    Key Terms
    4
    Mark Points

    What You Need to Demonstrate

    Key skills and knowledge for this topic

    • Award marks for accurate construction of supply diagrams: axes labeled Price/Quantity, curve labeled S, and clear indication of shift direction (left/right).
    • Credit logical chains of reasoning that link a factor (e.g., subsidy) to cost of production, then to profit margins, and finally to willingness to supply.
    • Candidates must distinguish between 'production' (total output) and 'productivity' (output per unit of input) when explaining supply shifts.
    • High-level responses must evaluate the magnitude of a supply shift based on the significance of the factor change (e.g., size of tax increase).

    Marking Points

    Key points examiners look for in your answers

    • Award marks for accurate construction of supply diagrams: axes labeled Price/Quantity, curve labeled S, and clear indication of shift direction (left/right).
    • Credit logical chains of reasoning that link a factor (e.g., subsidy) to cost of production, then to profit margins, and finally to willingness to supply.
    • Candidates must distinguish between 'production' (total output) and 'productivity' (output per unit of input) when explaining supply shifts.
    • High-level responses must evaluate the magnitude of a supply shift based on the significance of the factor change (e.g., size of tax increase).

    Examiner Tips

    Expert advice for maximising your marks

    • 💡When the question asks to 'Explain using a diagram', the diagram is not optional; marks are capped without it.
    • 💡Use the acronym PINTSWC (Productivity, Indirect taxes, Number of firms, Technology, Subsidies, Weather, Costs) to recall shift factors.
    • 💡Always explicitly state the link to profit: 'Higher costs reduce potential profit, reducing the incentive to supply.'
    • 💡In 6-mark analysis questions, ensure two distinct chains of reasoning are developed fully rather than listing multiple undeveloped points.

    Common Mistakes

    Pitfalls to avoid in your exam answers

    • Confusing 'supply' (the whole curve) with 'quantity supplied' (a specific point), leading to incorrect diagrammatic representation.
    • Conflating 'costs of production' with the 'price' of the product; assuming a price rise shifts the curve rather than causing a movement along it.
    • Drawing the supply curve with a negative gradient (downward sloping) due to confusion with demand curves.

    Study Guide Available

    Comprehensive revision notes & examples

    Read Study Guide

    Key Terminology

    Essential terms to know

    Likely Command Words

    How questions on this topic are typically asked

    State
    Calculate
    Explain
    Analyse
    Discuss
    Evaluate

    Ready to test yourself?

    Practice questions tailored to this topic