Non-price factors supply

Question 1

Non price factors effecting supply

Answer 1

1. Cost of production (lower=more profit, higher incentive)
2. Level of technology (new tech, reduce cost of production)
3. Availability of resources (more= more profit)
4. Seasonal conditions (Christmas paper- favourable, enhance/ opp.)
5. The price of other goods (may encourage producer to change what it producers)
6. Producer expectations (positive expectations, likely increase in production)
7. Ease of entry to, exit from, the market (difficult entry and exit= relatively inelastic)
8. Number of suppliers (increase sellers=increase supply)

Question 2

Price effecting supply

Answer 2

Movement along s curve

Expansion and contraction