ECONOMICS (CBSE/UGC NET)

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: -These are as follows: Price of inputs: A higher input cost will increase the cost of production and will reduce the supply, whereas a lower input cost will increase the supply. Taxes and subsidies: Taxes discourage supply by reducing sellers’ prices, and subsidies encourage the supply of a good.

Detailed explanation-3: -A positive change in supply when demand is constant shifts the supply curve to the right, which results in an intersection that yields lower prices and higher quantity. A negative change in supply, on the other hand, shifts the curve to the left, causing prices to rise and the quantity to decrease.

Detailed explanation-4: -Higher prices will result in an increased quantity supplied and lower price will result in a decrease in quantity supplied. Only a change in a non-price determinant of supply causes a good’s supply to increase or decrease.