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Determinants of supply are the variables that can alter or influence the supply of a commodity on the market. Business managers analyze the determinants of supply to study and anticipate the future supply of a product and strategize accordingly.
Economists break down the determinants of a firm's supply into 4 categories: Price; Input Prices; Technology; Expectations; Supply is then a function of these 4 categories. Let's look more closely at each of the determinants of supply.
Define the quantity supplied of a good or service and illustrate it using a supply schedule and a supply curve. Distinguish between the following pairs of concepts: supply and quantity supplied, supply schedule and supply curve, movement along and shift in a supply curve.
Supply refers to the quantity of a good that the producer plans to sell in the market. Supply will be determined by factors such as price, the number of suppliers, the state of technology, government subsidies, weather conditions and the availability of workers to produce the good.
The law of supply states that a higher price for a good or service will lead producers to supply more of that good or service to the market. This is because businesses want to increase their...
The Determinants of Supply. The law of supply assumes price as the sole determinant, i.e., when the price rises, supply rises, and when the price falls, supply falls. However, in reality, along with price, many other factors determine the supply of a good or service.
Determinants of supply refer to the various factors that can influence the quantity of a good or service that producers are willing and able to sell at different prices. These factors include production costs, technology, the number of suppliers, expectations for future prices, and government policies.
Supply is determined by both price and non-price factors such as taxes and subsidies, and the costs of the factors of production.
The quantity supplied is the amount of a good or service that is made available for sale at a given price point. In a free market, higher prices tend to lead to a higher quantity supplied and...
Determinants of supply refer to the factors that influence the quantity of a good or service that producers are willing and able to offer for sale at various prices. These determinants include input prices, technology, expectations, number of sellers, and government policies.