Question

How is supply of a
affected by : 1Decerease.
price of other related good
2 improvement in technology of
production ​

Answer 1

1) A decrease in the price of related good leads to the increase in the supply of the concerned good or commodity

2)Improvement in technological inputs of production will cause the supply of the concerned good or commodity to increase.

Explanation:

In the first case,the decrease in price of other related commodity or good implies less profitability from the production of those goods by the producers or firms.Therefore,a relatively higher price of the concerned good will encourage the producers or firms to shift their productive resources and inputs to the production of the concerned good or commodity with the prospects of higher profitability due to its higher relative price compared to the other related goods.

In the second instance,improvement of technological resources or inputs will enhance the productive efficiency and productivity of the existing resources and factor/inputs of production which would ultimately contribute to higher output productivity and suppl level.Therefore,advanced and better technological inputs in the production process will expand the production level of the concerned good or commodity and increase its supply in the market.