non price determinants of supply

Question 1

non price determinants are

Answer 1

1. changes in costs of factors of production
2. prices of related goods
3. indirect taxes and subsidies
4. future price expectations
5. changes in tech

Question 2

2 types of supply

Answer 2

1. competitive supply

2. joint supply

Question 3

competitive supply

Answer 3

output of one product prevents or limits the production of alternative products

Question 4

joint supply

Answer 4

the supply of a product that results in the output of atleast one by product( less important product)

Question 5

indirect taxes

Answer 5

government levies on expenditure not income, generally imposed on producers.
(reduce profit so leftwards supply shift)

Question 6

subsidies

Answer 6

a form of financial assistance from the government, by reducing costs of production.
( shift supply curve to the right)

Question 7

future price expectations

Answer 7

if sellers expect demand to increase they would increase supply so outwards shift
if sellers expect demand to decrease they would decrease supply or prices will fall so inwards shift.

Question 8

advances in technology

Answer 8

there is an increase in supply of goods and services

shift to the right

Question 9

number of firms

Answer 9

if number of firms increases, it means market increased too so outwards shift
if market price or size falls firms number decreases

Question 10

a movement along the supply curve occurs when there is a change in non price determinants true or false

Answer 10

false