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The demand curve only shows the relationship between the price and quantity. If one of the other determinants changes, the entire demand curve shifts.
Just as with demand, expectations about the future determinants of supply, meaning future prices, future input costs and future technology, often impact how much of a product a firm is willing to supply .
Definition of determinants of supply: Elements besides price which determine the available amount of a product or service. Examples of determinants of supply in a business consist of the price of raw material, production costs, taxes and. Determinants Supply and Demand; Shared Flashcard Set. Details. Title. Determinants Supply and Demand. Definition. Determinant of Supply As price increases, supply decreases. As price decreases, supply increases. Term. Technology: Definition. Determinant of Supply.
Determinants of supply (also known as factors affecting supply) are the factors which influence the quantity of a product or service supplied. We have already learned that price is a major factor affecting the willingness and ability to supply. Determinants of supply are the factors that affect the supply of a product or service and that cause a shift in the supply curve. However, these factors are held constant (according to the law of supply) to alleviate the effect of the law of supply especially with relation with quantity supplied and the supply .