What is supply explain the factors affecting supply?
Answers
Answered by
3
Supply: This refers to the willingness and ability of a producer to sell a good or service at a given price.
Supply is one of the main determinants in a free market economy, and setting an equilibrium in a market as well.
Many factors affect supply, following are some factors:
1- The cost of production
2- The cost of labor vs cost of capital
3- The taxation at the hands of the government
4- Inflation rate
5- price of substitutes
6- governmental policies against that good, example: Cigarette
7-Technology
8- Natural conditions
9-Price
Answered by
0
- Price of the substitutes
- The price of factors of production
- Change in technology
- The price of the commodity
- Expected change in price
- Taxation policy
- Means of transport
- Number of producers
- Natural factors
Similar questions
English,
7 months ago
Science,
7 months ago
Math,
7 months ago
Computer Science,
1 year ago
History,
1 year ago