Unit 2.2 · Supply
Non-price Determinants of Supply
AO2
Syllabus Requirement
Factors that shift the supply curve: changes in factor costs, prices of related goods, indirect taxes/subsidies, expectations, technology, and number of firms.
Assessment Objectives
AO2Application and Analysis
Summary
Non-price determinants of supply are factors other than price that influence the quantity of a product that producers are willing to supply. Understanding these determinants is important in economics as they can shift the supply curve and affect market equilibrium. Key factors include production costs, related goods' prices, taxes, subsidies, technology, future price expectations, and the number of firms in the market.