Question
Discuss five factors that could affect the quantities of cabbages supplied in a market.
Answer
- Technology - modern methods may increase the production of cabbages.
- Price of cabbages - the higher the price, more is supplied/the lower the price the lower the supply.
- Government policy - favorable policies may increase supply while unfavorable policies may decrease supply.
- Price of other related commodities -price of other goods affect supply. If price of related goods increase the supply of cabbages may decrease/if price of related goods decrease, supply of cabbages may increase.
- Natural factors/seasons/climate factors -favorable factors lead to increase in supply of cabbages/unfavorable factors lead to decrease of cabbages supply - Skills/training of farmers - better skills/training leads to increased supply/poor skills/training leads to low supply of cabbages.
- Cost of production - high cost of production leads to decrease in supply/low cost of production leads to increase in supply of cabbages.
- Expected future changes in price of cabbages - expected future increase in price leads to decrease in supply/expected future decrease in price leads to increase in supply of cabbages.
- Price of cabbages - the higher the price, more is supplied/the lower the price the lower the supply.
- Government policy - favorable policies may increase supply while unfavorable policies may decrease supply.
- Price of other related commodities -price of other goods affect supply. If price of related goods increase the supply of cabbages may decrease/if price of related goods decrease, supply of cabbages may increase.
- Natural factors/seasons/climate factors -favorable factors lead to increase in supply of cabbages/unfavorable factors lead to decrease of cabbages supply - Skills/training of farmers - better skills/training leads to increased supply/poor skills/training leads to low supply of cabbages.
- Cost of production - high cost of production leads to decrease in supply/low cost of production leads to increase in supply of cabbages.
- Expected future changes in price of cabbages - expected future increase in price leads to decrease in supply/expected future decrease in price leads to increase in supply of cabbages.
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