ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Gov’t Regulation
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Cost of Inputs
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Expectations of Producers
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Number of Producers
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Education
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Detailed explanation-1: -Some of the determinants of supply are technology, the number of suppliers, expectation of suppliers, feedback from consumers, increase in tax, high wage rate, etc. The change in prices of other products which a producer can produce may cause a change in supply for the product.
Detailed explanation-2: -What Is the Law of Supply? The law of supply is the microeconomic law that states that, all other factors being equal, as the price of a good or service increases, the quantity of goods or services that suppliers offer will increase, and vice versa.
Detailed explanation-3: -A decrease in the prices of a good’s inputs reduces costs and allows suppliers to supply more of that good at all prices. Therefore, a decrease in the prices of a good’s inputs leads to a rightward shift of the supply curve for that good, as in Figure (b).
Detailed explanation-4: -i. Price: ii. Cost of Production: iii. Natural Conditions: iv. Technology: v. Transport Conditions: vi. Factor Prices and their Availability: vii. Government’s Policies: viii. Prices of Related Goods: