Question

how does change in factor prices affect the supply of a commodity

Answer 1

Heya...

Change in factor prices affect the supply in following way...

1 Rise in factor price...

If the cost of factors of production increase then the cost of production also increase,, then the producer will produce less goods, it less to
....... DECREASE IN SUPPLY...

2 Fall in prices of factor inputs...

If the production factors became cheap then the cost of production will decrease ,, producer encourage to produce more goods , it leads to..
..... INCREASE IN SUPPLY..

-- Be Brainly...

Answer 2

When an economy is not using all of its resources, it is producing at a point below its production possibilities frontier.