1. What are the determinants of supply?
1) price of the product
-a producer is always aimed on maximizing his profit and
minimizing his cost. a higher price increases his
willingness to supply and vice-versa.
2) technology changes
-technology aids a producer in minimizing his cost of
production; mass production is possible with technology
3) resource supplies
-the producer also has to pay for other resources such as
raw materials and labor. if his money is short on
supplying a certain number of products because of an
increase in resource supplies, then he has to reduce his
supply.
4) tax/ subsidy
-a producer aims to minimize his profit, but an increase in
tax will only increase his expenses, decreasing his
capacity to buy resource supplies and forcing him to
reduce his supply.

2. 5) expectations about future price
- again, the producer is aimed at maximizing his profit. an
future decline in price would tell the producer to lessen
his supply so that he will not endure a loss when the
prices go down and vice-versa.
6) price of other goods produced
-a producer may not only produce on product but other
products as well. a producer's money is limited and if he
increases his supply in one product, he would have to
decrease his supply in the other product, not unless his
sales increase.