--%>
Assignment Help - homework help

What are the determinants of supply

What are the determinants of supply?

E

Expert

Verified

The fundamental determinant of supply is the price of the commodity.  As price increases, the quantity supplied increases.  An increase in price reason a faction up to a given supply curve.  A decrease in price causes a movement down a given supply curve.

The non-price determinants of supply are: resource (input) prices, technology, taxes and subsidies, expectations, prices of other related goods as well as the number of sellers.  If one or more of these changes, there will be the whole supply curve as well as a change in supply will shift to the right or the left.

   Related Questions in Business Economics

  • Q : Drawbacks of capital budgeting Write

    Write down the drawbacks of capital budgeting?

    		•
  • Q : Market Apparent program For the

    For the question below, utilize the given information. The market for gizmos is competitive, with an increasing sloping supply curve and a downward sloping demand curve. With no govt. intervention, the equilibrium price is $25 and the equilibrium quantity is 10,000 gi

    		•
  • Q : Utility functions to calculate scores

    Question: 1. Nancy is taking a course in Fairy Tales from Professor Grimm and another in Philosophy from Professor Par. In each course there will be two exams, a midterm exam and a final exam. In Professor Grimm's

    		•
  • Q : Explain the foundation of economics

    Explain the foundation of economics where society’s material wants are unlimited?

    		•
  • Q : Entertainment tax-Indirect tax Why

    Why entertainment tax comes in indirect tax? Answer: Since its burden can be shifted to others.

    		•
  • Q : Economic crisis situation in Europe

    Question: Describe the present economic crisis situation in Europe.   Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world i

    		•
  • Q : Define the Legal forms of businesses

    Define the Legal forms of businesses?

    		•
  • Q : How will the system accommodate change

    How will the system accommodate change?

    		•
  • Q : High-convexity portfolios outperform

    An important drawback of "traditional yield spread analysis" is the "failure to take into account future interest rate volatility that would affect the expected cash flow" of a fixed income security. How does option adjusted spread analysis correct for the "failure" of traditional yield spread analy

    		•
  • Q : Define Dependent and independent

    Define Dependent and independent variables?

    		•