Do you agree or disagree with the following statement? Give reason.
Price is the only determinant of supply.
No, the above statement is not correct. Besides price, the supply of a commodity is affected by a large number of other factors. The following are some of the factors that determine supply.
1. Price of commodity
2. Price of related goods
3. Technology of production
4. Price of factors of production
5. Government policies
6. Nature of commodity
7. Goals of the firm
8. Expectation of future prices