Non-price factors of Supply Flashcards
1
Q
Non-price factors of supply
A
These influence the quantity sellers are willing to supply at any given price
2
Q
Non-price factors of supply - Cost of production
A
-Increases in wage growth etc can increase cost of production
-This is seen as less favorable conditions, decreasing supply
3
Q
Non-price factors of supply - climatic conditions
A
-More frequent natural disasters etc are disruptions to supply, decrease quantity supplied at any given price
4
Q
Non-price factors of supply - Technology, productivity
A
-This increases productivity (output per unit of input)
-Average costs fall and firms are more willing to produce at any given price
5
Q
Non-price factors of supply - Government Policy
A
-Subsidies etc help firms to cover production costs, increasing willingness to supply
