Determinants+of+Supply

Determinants of Supply

Determinants of supply are the things that cause the supply curve to shift to the left or right. A shift to the left is a decrease in supply, and a shift to the right is an increase in supply. An increase in supply would result in an increase in quantity of a good sold, and a decrease in the price. A decrease in supply would result in a decrease in quantity of a good sold, and an increase in the price.

Some common determinants of supply include production costs, government taxes and subsidies, changes in production technology, number of producers in market, changes in objectives of producers, prices of substitute goods, and producers' future expectations. These will cause shifts in the supply curve.

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http://tutor2u.net/economics/presentations/aseconomics/markets/DeterminantsofSupply/default.html http://www.shvoong.com/social-sciences/economics/1745216-revisiting-determinants-supply/ http://petrarcanomics.wordpress.com/2008/08/26/determinants-of-supply-and-demand/

Question: Which of the following is not a determinant of supply? a. Technology b. Income of buyers c. Prices of related goods d. Resource prices

The answer is b.