Please I need help with this question thanks The Market Supp

Please I

need help with this question thanks.

The Market Supply Curve is determined by What 5 Determinates? MacBook Air

Solution

1. Price of the product- The price and the supply has a positive relationship, at a higher price more quantity of goods sold in the market and vice versa. This is because at higher prices the producer want to maximize his profits.

2. Input availability- if there is a shortage of input less produced and sold in the market and there is plenty of resources the firms will supply more.

3. Cost of production- At an increased cost of production the firms will produce less and if there is low cost the firms would increase the cost of production. The firms always try to produce more at low cost.

4. Nature of a market- In a monopoly market the firm produces less and charges a high price and on the other hand in a perfectly competitive economy there is large number of sellers in the market so there would be a bigger supply of goods and services.

5. Technology- With the use of advanced technoogy the firm produces and sell more quantity of output and vice versa.