FAQ About Economics
What are the factors affecting supply?
A supply curve shows how the quantity supplied will change as the price rises and falls; here the assumption of ceteris paribus applies, that is, other economically relevant factors remain unchanged. If other factors related to supply change, then the entire supply curve will shift. A shift in supply means that there will be a change in the quantity supplied at each price level.
Other factors that change the supply are like this;
- Natural conditions,
- New technology,
- Government policies.
