--%>

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 : Elucidate the overview of Business Cycle

    Elucidate the overview of Business Cycle?

  • Q : Illustrate the rate of exchange of two

    Illustrate the rate of exchange of two products?

  • Q : Type of expenditure at the local level

    What is the most important source of revenue and the major type of expenditure at the local level?

  • Q : Decreases in opportunity costs of

    The opportunity costs of production and consumption for most resources and goods tend to be decreased by: (w) private monopoly power. (x) price floors. (y) intense competition. (z) price ceilings. Hey friends pleas

  • Q : Single seller not sell at a price lower

    An individual seller within perfect competition will not sell at a price lower than the market price since: w) demand for the product will exceed supply.  x) the seller would begin a price war. y) the seller can sell any quantity she desires at the prevailing mar

  • Q : Define the natural price by Adam Smith

    In words of Adam Smith, who theorized that the “natural price” of a good based most directly upon the: (1) wage rate and the relative amount of labor required to produce the good. (2) greater of the value of the good &ldqu

  • Q : Distribution of income and wealth in a

    Of the given options, the economist whose theories pivoted least upon the distribution of income and wealth (class conflict) in a capitalist system would have been: (1) Adam Smith. (2) David Ricardo. (3) Karl Marx. (4

  • Q : Elucidate types of unemployment

    Elucidate types of unemployment?

  • Q : Discuss the economic aspects of ticket

    Discuss the economic aspects of ticket scalping also identifying the gainers and losers?

  • Q : Rivalry for various types of resources

    Intermediaries ultimately prosper only when they give a service of decreasing: (1) demand for a good (2) prices paid to manufacturers of a good. (3) transaction costs. (4) rivalry for various types of resources. (5) cut-throat competition into markets