Advertisement Remove all ads

Explain Any One Factor that Affects the Supply of a Commodity. - Economics

Explain any one factor that affects the supply of a commodity.

Advertisement Remove all ads

Solution

Price of the product is one of the factors which affects the supply of a commodity. When there is an increase in the price of the product and if it is more than the marginal cost of production, it enables a firm to earn more profit by selling at a higher price. Hence, there is an increase in the supply of a product.

Concept: Concept for Demand and Supply
  Is there an error in this question or solution?
Advertisement Remove all ads
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×