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What are the six main determinants of supply?

Updated: 4/28/2022
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Sydrodeo

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11y ago

Best Answer

1. Number of producers

↑(↓) producers => ↑(↓) supply (S)

2. Resource prices

↑(↓) Resource Price => ↓(↑)S

3. Technology

↑ Technology=> ↑S (technology is assumed to never get worse)

4. Taxes/subsidies

↑(↓) Taxes => ↓(↑)S; ↑(↓) Subsidy =>↑(↓)S

5. Producer expectations

(varies)

6. Prices of related goods

↑(↓) Substitute =>↓(↑)S; ↑(↓) Complements => ↑(↓)S

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