BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
A decrease in productivity
|
|
|
Fewer sellers in the marketplace
|
|
|
A decrease in government regulations
|
|
|
An increase in the cost of raw materials
|
Detailed explanation-1: -Price may be defined as the amount a customer is willing to pay for a product or service. This is the most important aspect that determines a product’s supply. According to the law of supply, when the price of a commodity rises, so does its supply, and vice versa.
Detailed explanation-2: -Price. Price can be understood as what the consumer is willing to pay to receive a good or service. This is the main factor that influences the supply of a product. In the law of supply, when the price of a product goes up, the supply of the product also increases and vice versa.
Detailed explanation-3: -Supply will be determined by factors such as price, the number of suppliers, the state of technology, government subsidies, weather conditions and the availability of workers to produce the good.
Detailed explanation-4: -Government policies can affect the cost of production and the supply curve through taxes, regulations, and subsidies. For example, the U.S. government imposes a tax on alcoholic beverages that collects about $8 billion per year from producers. Taxes are treated as costs by businesses.