What is the determinants of supply ?
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Hello !!
When price changes, quantity supplied will change. That is a movement along the same supply curve. When factors other than price changes, supply curve will shift. Here are some determinantsof the supply curve.
Factors affecting production cost are: input prices, wage rate, government regulation and taxes, etc
Anonymous:
thanks fot your information.
Answered by
2
Determinants of supply are factors that may cause changes in or affect the supply of a product in the market place.
These factors include:
1. Production technology: an improvement of production technology increases the output. This lowers the average and marginal costs, since, with the same production factors, more output is produced.
2. Prices of production factors: a rise in the price of one or more production factors leads to an increase in the production costs and vice versa.
These factors include:
1. Production technology: an improvement of production technology increases the output. This lowers the average and marginal costs, since, with the same production factors, more output is produced.
2. Prices of production factors: a rise in the price of one or more production factors leads to an increase in the production costs and vice versa.
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