--%>

Basic supply determinants of other than price

Illustrate the 6 basic supply determinants of other than price?

E

Expert

Verified

The 6 basic supply determinants of other than price are:-

1. Resource prices—a rise in resource prices will cause a decrease in supply or leftward shift in supply curve; a decrease in resource prices will cause an increase in supply or rightward shift in the supply curve.

2. Technology—a technological improvement means more efficient production and lower costs, so an increase in supply or rightward shifts in the curve results.

3. Taxes and subsidies—a business tax is treated as a cost, so decline in supply; so increases in supply is a subvention lowers cost of production,.

4. Prices of related goods—if price of substitute manufacture good rises, producers might shift production toward the higher priced good which causes decrease in supply of original good.

5. Expectations—expectations about the future price of a product can cause producers to increase or decrease current supply.

6. Number of sellers—generally, the larger the number of sellers the greater the supply.

   Related Questions in Business Economics

  • Q : Perfect Competition leads to Allocative

    A perfectly competitive industry achieves allocative efficiency since: w) goods and services are produced at the lowest possible cost. x) services and goods are produced up to the point where the last unit gives a marginal benefit to consumers equivalent to the margin

  • Q : Business Strategies Cingular and Alltel

    Cingular and Alltel involve in aggressive and expensive advertising for cell-phones. A reason for this advertising may be: (1) attempts to increase market share. (2) predatorily drive other firms by the market. (3) to increase the use of cell phones.

  • Q : Invisible hand Describe the meaning of

    Describe the meaning of the term “invisible hand.”

  • Q : Economic efficiency enhancement as

    Transaction costs are decreased and economic efficiency is enhanced by: (1) long-term wage and price controls. (2) monopolies which cooperate with central planners. (3) blacklists and yellow dog contracts. (4) bureaucratic tendencies

  • Q : Marginal rate of substitution Problem:

    Problem: Luke likes to consumer CDs (good1) and pizzas (good 2). His preference over both goods is given by the utility function U(x1; x2) = x21

  • Q : Illustrate the advantage and

    Illustrate the advantage and disadvantage of Partnership?

  • Q : Distribution of endowments 1. We have

    1. We have discussed the importance of resource endowments and institutions for an economy's successful development. a. In this game, what are the resources that make up the endowments, and what defines a given player's endowment o

  • Q : Explain Unemployment Explain

    Explain Unemployment, Growth, and the Future?

  • Q : Explain how an increase in state

    Use two market diagrams to explain how an increase in state subsidies to public colleges might affect tuition and enrollments in both public and private colleges.

  • Q : David Hume statement regarding money in

    In modern parlance, David Hume statement regarding money which is Tis none of the wheels of trade. And tis the oil, was referring to the notion that money: (i) is relatively costly to produce. (ii) facilitates divisions of labor and specialization and