--%>
Assignment Help - homework help

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 : Introduction of the term Cost Principle

    Give a brief introduction of the term Cost Principle ?

    		•
  • Q : An Inquiry in the Nature and Causes The

    The first comprehensive work upon economics written within English was authored through Adam Smith in 1776 year and entitled that “An Inquiry within the Nature and Causes of: (1) Laws of Supply and Demand.” (2) Wealth of Nations.” (3

    		•
  • Q : What does high or low operating

    What does high or low operating leverage specify?

    		•
  • Q : Question 7 Question 7: You are given

    Question 7: You are given the following data about two firms: FIRM A Quantity 0 1 2 3 4 5 6 Total revenue ($) 0 10 20 30 40 50 60 Average revenue ($) ___ ___ ___ ___ ___ ___ ___ Marginal revenue ($) ___ ___ ___ ___ ___ ___ Total cost ($) 30 42 50 60 76 100 14

    		•
  • Q : Fiscal Policy Fiscal Policy : Public or

    Fiscal Policy:Public or government finance is a field of economics. This deals with budgeting the revenues and expenditures of government (i.e., or public sector). It is regarding the identi

    		•
  • Q : Rightward shift of PPC What was

    What was rightward shift of PPC point out? Answer: It points out growth of the resources.

    		•
  • Q : Favor laissez- faire economic policies

    Favor laissez- faire economic policies tended by Adam Smith, who also: (w) saw the requirement for several state intervention. (x) believed there were no conditions in which the government must intervene. (y) supported most government

    		•
  • Q : Major players in international trade

    Who are the major players in international trade today?  Besides Japan, what other Asian nations play significant roles in international trade?

    		•
  • Q : Demand forecasting consumer's interview

    consumer's interview method for demand forecasting(point to point explain)

    		•
  • Q : Argument by Adam Smith for a true

    Within the Wealth of Nations, argument by Adam Smith such that a nation’s true wealth is its capability to: (1) obtain stocks of financial capital. (2) inspire its people’s courage and diligence. (c) give

    		•