Question

What are the factors of supply

Answer 1

Supply refers to the quantity of a product to be sold on the market by the manufacturer. Supply would be dictated by factors such as quality, supplier number, state of technology, government subsidies, weather conditions and workers' availability to produce the nice.

A decrease in costs of production.- This means business can deliver more at any price. Lower prices may be attributed to lower wages and lower costs for raw materials

More firms- An increase in the number of producers will cause the supply to rise.

Investment in capacity- Expansion of existing companies' capacities, e.g. building a new factory

Related supply- An increase in the availability of a related product, for instance beef and leather

Weather- An increase in the availability of a related product, for instance beef and leather

Technological improvements- Technology improvements, e.g. computers or automation, reducing costs for firms.

Government subsidies- Rising government subsidies would also reduce the cost of goods, e.g. train subsidies would increase the train ticket rates.