What are the determinants of supply
What are the determinants of supply?
Expert
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.
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