Briefly explain ANY FOUR (4) determinants of supply for the car market in your country

Economics Dec 09, 2020

Briefly explain ANY FOUR (4) determinants of supply for the car market in your country.

Expert Solution

If the number of firms that produces cars increases in the United States, the market supply will increase. If, on the other hand, the number of firms decreases, the supply will decrease.
If the cost of inputs used to produce cars (ie steel) increases, the supply of cars will decrease because each car is now more expensive to produce.
New technology that allows cars to be made faster will also cause them to be produced at a lower cost, this will result in the supply of cars to increase.
If firms expect the price of cars to rise in the future, they will increase their production now because of the higher expected profits, causing the supply to increase.

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