QuestionAugust 16, 2025

Which of the following is not a determinant of supply? production technology taxes prices of related goods subsidies

Which of the following is not a determinant of supply? production technology taxes prices of related goods subsidies
Which of the following is not a determinant of supply?
production technology
taxes
prices of related goods
subsidies

Solution
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Answer

Prices of related goods Explanation 1. Identify determinants of supply Determinants of supply include factors that affect the quantity of goods a producer is willing to sell at different prices. Common determinants are production technology, taxes, and subsidies. 2. Analyze each option - **Production technology**: Affects efficiency and cost, influencing supply. - **Taxes**: Increase costs, affecting supply. - **Subsidies**: Reduce costs, encouraging more supply. - **Prices of related goods**: Typically affect demand rather than supply.

Explanation

1. Identify determinants of supply<br /> Determinants of supply include factors that affect the quantity of goods a producer is willing to sell at different prices. Common determinants are production technology, taxes, and subsidies.<br /><br />2. Analyze each option<br /> - **Production technology**: Affects efficiency and cost, influencing supply.<br /> - **Taxes**: Increase costs, affecting supply.<br /> - **Subsidies**: Reduce costs, encouraging more supply.<br /> - **Prices of related goods**: Typically affect demand rather than supply.
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