List the factors that influence supply. How does a change in each of the factors you have listed affect the supply curve?
What will be an ideal response?
ANSWER
The factors that influence the supply of a good include the price of the good, input prices, technology, prices of related goods, producers’ expectations, and the number of sellers. A change in price causes a movement along the supply curve for the good. A change in any of the other determinants of supply would cause the entire supply curve to shift. The direction of the shift depends on the specific change in question.
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