Define the term govt policies in context of factor of supply..???
Answers
Answered by
2
Heya......
Supply refers to the willingness of different quantity of the commodity that a producer is ready to sell at the different prices....
** Government policies in the terms of supply determinant are....
---->>> Two types of govt policies are affecting supply of a commodity that r...
** Taxes....
If govt reduces the taxes then supply increases because the cost of production will decrease and producer gets more investment to supply and vice versa....
** Subsidies....
If govt introduced subsidies then producer gets profit and able to produce more it increase the supply and vice versa....
:::::: Be Brainly ......
Supply refers to the willingness of different quantity of the commodity that a producer is ready to sell at the different prices....
** Government policies in the terms of supply determinant are....
---->>> Two types of govt policies are affecting supply of a commodity that r...
** Taxes....
If govt reduces the taxes then supply increases because the cost of production will decrease and producer gets more investment to supply and vice versa....
** Subsidies....
If govt introduced subsidies then producer gets profit and able to produce more it increase the supply and vice versa....
:::::: Be Brainly ......
Answered by
1
Government policies can affect the cost of production and the supply curve through taxes, regulations, and subsidies. ... Government subsidies reduce the cost of production and increase supply at every given price, shifting supply to the right.
Similar questions