Supply and its determinants. Law of supply.

1. DETERMINANTS
OF SUPPLY
SOUMYA BHADANI
DM17A51
PGDM1

2. Supply is the willingness and ability of producers to supply a particular
quantity of a commodity at a particular price over a given period of time.

4. Input Price
Price of the
good
DETERMINANTS OF SUPPLY
LAND (RENT)
LABOUR (WAGE)
CAPITAL(INTEREST)
ENTERPRISE(PROFIT)
• Most important factor
• Due to this there is change in quantity
supplied
• (movement along the supply curve)
• Due to this there is change in supply
• (shift in the supply curve either to the
left or right)

5. NONPRICEFACTORS
• Budget forecasting
• Taxes
Government
Policy
• Equipment's
• non availability of
skilled labors
Technology
• Road condition
• Traffic
Transport
Conditions
• Hoarding of productsExpectations
of Sellers
• Substitutes
• Complementary goods
Price of
other goods
• Climate/Season
Natural
Conditions