Question

Discuss all the determinants of supply and determinants of Demand

Answer 1

Determinants of supply are those factors which causes change in the supply

It can increase or decrease in the supply

They are not the price factors

The example of supply determinants can be

Increase in technology

Expectation level suppliers

Number of sellers in the market

For example if there is an increase in the technology then this will cause reduction in the price of production

This will lead to more supply and there will be rightward shift of the supply curve

Similarly if we talk about demand determinants then they are the factors that causes change in the demand whether rightwards or leftwards

Some of the factors can be-

Increase in the income level of consumer

Expectation level of consumer

Presence of substitutes in the market

Taste and preferences