An Overview of Factors that Affect Supply
This post will help further your understanding of factors affecting supply, for your Prelim Economics course. Factors are external influences that can cause shifts in the supply curve. The main determinants of individual and market supply include the following factors:
- The price/cost of factors of production;
- The price of substitutes and complements;
- Expected future prices;
- The number of suppliers in the market; and
- Technological progress.
The videos below go into more detail, exploring these factors.