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Do buyers determine demand and sellers determine supply?

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❶Supply is the quantity of a good which is offered for sale at a given price at a particular time. To make ice-cream, firms need various inputs like cream, sugar, machine, labour, etc.

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Determinants of supply are the factors that affect the supply of a product or service and that cause a shift in the supply curve. However, these factors are held constant (according to the law of supply) to alleviate the effect of the law of supply especially with relation with quantity supplied and the supply price.

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That is a movement along the same supply curve. When factors other than price changes, supply curve will shift. Here are some determinants of the supply curve. 1. Production cost: Since most private companies’ goal is profit maximization. Higher production cost will lower profit, thus hinder supply. Main determinants of the supply of money are (a) monetary base and (b) the money multiplier. These two broad determinants of money supply are, in turn, influenced by a number of other factors. Various factors influencing .

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Let's look more closely at each of the determinants of supply. What Are the Determinants of Supply? Price as a Determinant of Supply. Price is perhaps the most obvious determinant of supply. As the price of a firm's output increases, it becomes more attractive to produce that output and firms will want to supply more. Economists . Definition: Determinants of supply are factors that may cause changes in or affect the supply of a product in the market place. What Does Determinants of Supply Mean? These factors include: 1. Production technology: an improvement of production technology increases the output. This lowers the average and marginal costs, since, with the .