The non-price determinants of supply include which of the following?

Question

Consumer income.

Production costs, input prices, government policies, and expectations.

Production costs, input prices, government policies, and buyer's expectations of future price changes.

Technology, prices of related goods, and number of buyers.

Answer 1

The non-price determinants of supply include the following:

• Production costs and input prices: Changes in the costs of raw materials or labor can affect how much of a product a supplier is willing to produce at any given price.
• Government policies: This includes taxes, subsidies, and regulations that can impact production costs and incentives.
• Expectations: If suppliers expect future prices to rise, they may decrease current supply to sell more at higher prices later.

Therefore, the most accurate statement regarding the non-price determinants of supply from your list is:

Production costs, input prices, government policies, and expectations.