--%>
Assignment Help - homework help

Basic supply determinants of other than price

Illustrate the 6 basic supply determinants of other than price?

E

Expert

Verified

The 6 basic supply determinants of other than price are:-

1. Resource prices—a rise in resource prices will cause a decrease in supply or leftward shift in supply curve; a decrease in resource prices will cause an increase in supply or rightward shift in the supply curve.

2. Technology—a technological improvement means more efficient production and lower costs, so an increase in supply or rightward shifts in the curve results.

3. Taxes and subsidies—a business tax is treated as a cost, so decline in supply; so increases in supply is a subvention lowers cost of production,.

4. Prices of related goods—if price of substitute manufacture good rises, producers might shift production toward the higher priced good which causes decrease in supply of original good.

5. Expectations—expectations about the future price of a product can cause producers to increase or decrease current supply.

6. Number of sellers—generally, the larger the number of sellers the greater the supply.

   Related Questions in Business Economics

  • Q : Describe the duty of bondholders in a

    Describe the duty of bondholders in a bond?

    		•
  • Q : Rivalry for various types of resources

    Intermediaries ultimately prosper only when they give a service of decreasing: (1) demand for a good (2) prices paid to manufacturers of a good. (3) transaction costs. (4) rivalry for various types of resources. (5) cut-throat competition into markets

    		•
  • Q : Perfect competition leads the economic

    The perfectly competitive market structure benefits consumers since: w) firms do not generate goods at the lowest possible price within the long run. x) firms are forced through competitive pressure to be as efficient as possible. y) firms add a much

    		•
  • Q : Illustrate 2nd function to promote and

    Illustrate the 2nd function to promote and maintain competition?

    		•
  • Q : Calculate Equilibrium Quantity and Price

    1. The owner of a firm calculates that next year's profit will be $1,000. Each successive year profit will increase by 10% (i.e. year 2: $1100; year 3: $1210 and so on.) At the end of the 5th year the firm could be sold for $20,000. A) if the appropriate di

    		•
  • Q : Eco Quantity TR TC 0 $0.00 $10.00 1

    Quantity TR TC 0 $0.00 $10.00 1 $150.00 $30.00 2 $290.00 $50.00 3 $420.00 $80.00 4 $540.00 $120.00 5 $650.00 $170.00 6 $750.00 $230.00 7 $840.00 $300.00 8 $920.00 $

    		•
  • Q : Define the for whom query in market

    The market system responses the “for whom?” query with: (i) distributing goods on the basis of require. (ii) using central planning to coordinate production decisions. (iii) catering to consumers with adequate resources to demand goods. (i

    		•
  • Q : Requirement of building blocks for a

    Building blocks for a capitalist system consist of: (1) supplies and demands. (2) private property rights. (3) laissez-faire policies. (4) market-determined outputs and prices. (5) All of the above. Please guys hel

    		•
  • Q : Illustrate the term Positive and

    Illustrate the term Positive and Normative Economics?

    		•
  • Q : Affluence tomorrow requires sacrifice

    Explain:  “Affluence tomorrow requires sacrifice today.”

    		•