Factors influencing supply curve, Managerial Economics

Assignment Help:

Factors influencing Supply Curve

State of technology    

There is a direct relationship between supply and technology.  Improved technology results in more supply as with technology there is mechanisation.

Natural events

Natural events like weather, pests, floods, etc also affect supply.  These affect particularly the supply of agricultural products.  If weather conditions are favourable, the supply of agricultural products will increase.  Conversely, if weather conditions are unfavourable the supply of such products will fall.

Time

In the long run (with time), the supply of most products will increase with capital accumulation, technical progress and population growth so long as the last one takes place in step with the first two.  This reflects economic growth.

Supply of Inputs

Changes in supply of inputs will affect the quantity supplied; if this falls, less shall be supplied and vice versa.

Changes in the supply of the product with which the product in question is in joint supply e.g. hides and skins.

Taxes and subsidies

The imposition of a tax on a commodity by the government is equivalent to increasing the costs of production to the producer because the tax "eats" into the firm's profits.  Hence taxes tend to discourage production and hence reduce supply.  Conversely, the granting of a subsidy is equivalent to covering the costs of production.  Hence subsidies tend to encourage production and increase supply.


Related Discussions:- Factors influencing supply curve

Problem, Calculate point elasticity of demand for demand function Q=10-2p f...

Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2 . Thanks a lot!

Features of mixed economy, Features of this system The mixed economy i...

Features of this system The mixed economy includes elements of both market and planned economies.  The government operates and controls the public sector, which typically cons

Define the natural monopoly, Q. Define the Natural Monopoly? Natural M...

Q. Define the Natural Monopoly? Natural Monopoly: Natural monopoly is because of natural factors. For illustration, a particular raw material is concentrated at a specific pl

Demand and supply, The demand for good X is estimated to be:  where p x p...

The demand for good X is estimated to be:  where p x price of X in dollars M = personal disposable income in trillions of dollars per year P y = price of a competitive in do

Supply and Demand, Find price for demand of 105000 exhaust fans, function i...

Find price for demand of 105000 exhaust fans, function is 462-5/7q for demand and p-6/7q for supply. find supply at 312, equilibrium qt and price

Upper and lower bound, Consider the following table. It shows the market sh...

Consider the following table. It shows the market shares of seven clothing stores (A to G) in five dissimilar cities. a) Calculate the Herfindahl index (?H) for each city.

Explain the demand analysis - managerial economics, Demand analysis Dem...

Demand analysis Demand analysis is undertaken to forecast demand, which is a fundamental constituent in managerial decision-making. Demand forecasting is of important because a

Mixed economy, The Mixed Economy There are no economies in the world w...

The Mixed Economy There are no economies in the world which are entirely 'market' or planned, all will contain elements of both systems. The degree of mix in any one econom

The calculus of optimization, the demand for widgets(x) is given by: px=160...

the demand for widgets(x) is given by: px=160 -4x the production of widget has the following average variable cost: Avc=2x-20 fixed cost are 162 calculate the output level of widg

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd