ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Producer Expectations
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Consumer Expectations
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Consumer Income
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Price of Related Goods
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Detailed explanation-1: -Supply choices are influenced by a number of factors. Those factors include the price of the product in question, the number of producers, the input costs, the technological changes, the price of other possible products, and unpredictable factors such as weather.
Detailed explanation-2: -Producer expectations-expectations about the future price of a product can cause producers to increase or decrease current supply. Number of sellers-generally, the larger the number of sellers the greater the supply.
Detailed explanation-3: -The price of inputs or the factors of production such as land, labor, capital, and entrepreneurship also determine the supply of the goods. When the price of inputs is low the cost of production is also low. Thus, at this point, the firms tend to supply more goods in the market and vice-versa.
Detailed explanation-4: -The price/cost of factors of production; The price of substitutes and complements; Expected future prices; The number of suppliers in the market; and. Technological progress.