Which of the following is a determinant of supply?
A) Consumer tastes or preferences.
B) The prices of the factors of production.
C) 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 a good or service, which in turn affects the supply of that good or service. A rise in the price of a factor of production will increase costs, leading to a decrease in supply, while a decrease in the price of a factor of production will decrease costs, leading to an increase in supply. The other options listed are determinants of demand.

Which of the Following Is a Determinant of Supply