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The laws of supply and demand are very simple. The price of an item is determined usually by how many there are and how many are wanted; Supply and Demand. The determinative factors in the laws of supply for a company making any item, are thus how many can we make at a profit without deluting the future value of the same item that will be sold when it is made. Companies dont want to make too many of anything that would drive the price down to a point where they could no longer make a profit. At the same time, they do want to make all that can be sold at any given time, thereby maximising profits without compromising demand, the future values for that item if they dont sell too many. but then that encompasses laws of demand, which was not asked about. One way of doing all of this, is making a disposable item, that is only used once or a very few times, or making things so inexpensibly that it is easier to go buy another one when the first one breaks, or wears out.
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What happens to the demand curve when determinants change?
A change in any one or more of these determinants of supply, or supply shifters, will move the supply curve for a product either right or left.
What are the 3 determinants of supply elasticity?
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What are the determinants of the dead weight loss in economics?
The determinants of the deadweight loss in economics are the price elasticities of supply and demand.
Define the Law of Supply?
Supply by definition: those quantities of goods and services that are produced to meet consumer's "demand" at a given price and at a given point in time;the "law" of supply simply states that supply shows the relationship between quantities supplied and and the quantity a firm is willing to supply!pricing determinants:# that as price rises more quantities are supplied (there is an extension in quantities supplied / a movement along the supply curve); # while the converse is true i.e. as price falls quantities supplied fall (contract); non price determinants: e.g. technology, weather, etc.when non-pricing determinants of supply influence supply there are shifts in the supply curve!for e.g. where weather conditions are favourable supply of agricultural production will increase and as such there will be an increase in quantities supplied i.e. a rightward shift in the supply curve; the converse is true
What are the main determinants of labor demand n supply?
Main determinants of labour demand are: demand for goods,availability of capital and cost of labour. Main determinants of labour supply are: wages and benefits, population size(demographic factors) and job requirements
