Agricultural products have low price elasticities of supply

Output is affected by non-controllable factors such as climate

Supply decisions are based on the prices of the present time period

Markets have a low price elasticity of demand

The central bank imposing controls on bank lending

The removal of foreign exchange controls which restrict the transfer of currencies between countries

The removal of regulations which restrict Sunday trading

The creation of tax-exempt savings accounts to encourage savings

An increase in the size of a firm ' s capacity and plant

A bus company replacing smaller buses with larger buses

A factory employing two shifts of workers rather than one shift per day

Increased firm size allowing the firm to employ specialist managers

Normal profit will rise if the cost of production is falling as output increases

Profit per unit is equal to the difference between average revenue and average total cost

The point of profit maximization is always where average costs are lowest

A rise in output will always raise profits provided total revenue is rising

Private goods

Public goods

Free goods

Externalities

Price elastic demand, price inelastic supply

Price inelastic demand, price elastic supply

Price elastic demand, price elastic supply

Price inelastic demand, price inelastic supply

Pollution resulting from a production process

Firms training workers who then move to other employers

Some consumers being unable to afford goods because prices have been driven up by the demand from other consumers

Road congestion caused by rush hour traffic on the roads

To provide care for those who are terminally ill

To maintain a reasonable profit which can then be given as dividends to shareholders

To use the funding provided by government to further the primary cause of the organisation

To offer bonuses to the managing director of the organisation when a certain number of sales is reached in a year

To encourage members of the public to invest in the organisation through buying shares

£1,021

£1,070

£1,225.15

£1,155.12

There will be a shortage of housing supply in Lingford.

A ' black market ' may develop in housing, meaning the maximum price is ignored.

There will be a surplus of housing supply in Lingford.

Landowners will continue to build residential properties at the same rate as before the maximum price was implemented.

It is not likely that the maximum house price will need some sort of reform in the near future.