Which of the following is a determinant of supply?
A)Consumer tastes or preferences.
B)The prices of the factors of production.
C)Consumers' income.
D)Number of buyers.

Question

Quizplus · Accepted Answer

The prices of the factors of production, such as wages, rent, and raw materials, affect the cost of producing goods and services. As these costs increase, suppliers will be less willing to offer their goods and services for the same price, resulting in a decrease in supply. Therefore, the prices of the factors of production are a determinant of supply. The other options listed are determinants of demand, not supply.

Which of the Following Is a Determinant of Supply