ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -There are four non-price factors of supply that can influence the willingness of suppliers to produce goods. The cost of production, expected future prices, number of suppliers and technology.

Detailed explanation-2: -Non-price determinants include: Costs of the factors of production-assuming price stays constant, an increase in costs, such as labour costs, will reduce the firm’s willingness and ability to supply. A reduction in costs will increase a firm’s willingness and ability to supply.

Detailed explanation-3: -Thus, changes in non-price factors shift the demand curve and change the quantity for any given price combination. When quantity increases, for example, due to an increase in income, the curve shifts to the right, showing more demand for each price combination.

Detailed explanation-4: -The needs of the consumer. Consumer income (Y) Consumer tastes, preferences and fashions. Habit. Brand loyalty. The price of substitute products. The price of complementary products. Natural factors. More items •13-Jan-2020