Which of the following is not considered a factor that influences supply? a) Technology

Economics Dec 08, 2020

Which of the following is not considered a factor that influences supply?

a) Technology.

b) Resource prices.

c) Production taxes and subsidies.

d) The number of buyers.

Expert Solution

The correct answer is d) The number of buyers.

The factors that influence supply shift the supply curve from its original position. The number of buyers does not shift the supply curve. Changes in the number of buyers can cause shifts in the demand curve. This will mean that the new demand curve will meet the old supply curve at a new point. This will only cause the quantity supplied to change but not the supply curve.

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