What Determines Supply?
- The Law of Supply: The higher the price of a good, the greater the quantity supplied, ceteris paribus.
- The law of supply accounts for the upward slope of the supply curve.
Factors other than price
- Costs of production
- Prices of related goods
- e.g. the price of applesauce
- Expectations of Future Prices
- Technological changes
- The number of suppliers
- more apple producers = larger supply