ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -There is a consensus among economists that there are various primary factors that cause supply to change. These include technology, the price of raw materials, seller expectations, number of sellers in the market and prices of other commodities.

Detailed explanation-2: -Supply shifters include (1) prices of factors of production, (2) returns from alternative activities, (3) technology, (4) seller expectations, (5) natural events, and (6) the number of sellers. When these other variables change, the all-other-things-unchanged conditions behind the original supply curve no longer hold.

Detailed explanation-3: -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-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: