Question

how is supply of a commodity affected by the price of related commodities in detail​

Answer 1

Answer:

As a general rule, price of a commodity and its supply are directly related. It means, as price increases, the quantity supplied of the given commodity also rises and vice-versa. It happens because at higher prices, there are greater chances of making profit. It induces the firm to offer more for sale in the market.

Explanation:

Factors Affecting Supply:

Price of the Commodity: Price is the most important factor influencing the supply of a commodity. ...

Seller's Expectations about the Future Price: ...

Nature of Goods: ...

Natural Conditions: ...

Transport Conditions: ...

Cost of Production: ...

The State of Technology: ...

Government's Policy:

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