Factors Affecting Supply

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Presentation transcript:

Factors Affecting Supply Change in supply caused by a change in non-price factors (e.g. cost, state of technology) represented by a shift of the entire supply curve to the left (or right) when supply decreases (or increases).

Input price/Factor prices e.g. wages and raw materials e.g. Wages for workers (wage cut/less commission fee for the salesperson), supply State of technology--Improvement in technology e.g. Breakthrough in technology of mobile phone network mobile phone network supply

Changes in the price of related goods---Joint supply Price of one good quantity supplied Supply of another goods e.g. unique SMS service  popular price quantity supplied Sellers’ expectation Price expected to drop Salespeople try their bestattract more customers to sign contract at a higher price Supply ensure enough mobile phone sim cards for the market.

Change in Supply due to change in non-price determinants

1997 1998 1999 2000 2001 Number of public mobile radio-telephone subscriber units (thousands) 2128 2898 3990 5234 5702 Number of public mobile radio-telephone subscriber units per 100 population 32.7 44.0 60.1 78.0 84.4