Supply and Demand Factors

The video discusses six non-price determinants that influence supply levels: weather conditions, technology, prices of related goods, input prices, government policies, and the number of sellers. Weather can affect production levels, while technology can enhance productivity and output. Prices of related goods can either increase or decrease supply depending on whether they are in joint or competitive supply. Input prices and government policies, such as taxes and subsidies, also play a crucial role in determining supply. Lastly, the number of sellers in the market can impact the total supply available.

Which of the following is a non-price determinant of supply?

• Consumer preferences

• Weather conditions

• Advertising

• Brand loyalty

How does a drought affect the supply of harvest?

• Increases supply

• Decreases supply

• Increases demand

• No effect on supply

What is the effect of improved technology on production costs?

• Increases demand

• No change in production costs

• Decreases production costs

• Increases production costs

How does the use of machinery affect the level of output?

• Decreases output

• Increases output

• No change in output

• Decreases demand

What happens to the supply of beef when the price of leather increases?

• Supply of beef decreases

• No change in supply of beef

• Supply of beef becomes zero

• Supply of beef increases

How does a rise in the price of biofuel affect the supply of food crops?

• Decreases supply of food crops

• Increases supply of food crops

• No change in supply of food crops

• Increases demand for food crops

What is the effect of an increase in input prices on supply?

• Increases supply

• Decreases supply

• No change in supply

• Increases demand

How do government subsidies affect the cost of production?

• Decrease the cost of production

• No change in the cost of production

• Increase demand

• Increase the cost of production

What is the effect of an increase in the number of sellers in an industry?

• Decreases total supply

• Increases total supply

• Decreases demand

• No change in total supply

Which factor determines the level of supply in an industry?

• Number of sellers

• Consumer preferences

• Advertising

• Brand loyalty