determinants of supply

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6 Terms

1
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change in resource prices

the price of StalkGrow, a fertilizer used in the corn production process, falls.

2
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change in production technology

advancements in harvesting technology improve the efficiency of corn production

3
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changes in taxes or subsidies

the government provides increased subsidies to corn farmers

4
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change in prices of other goods that firms produce

farmers observe that the price of wheat falls (assuming many farmers divide their fields between wheat and corn production)

5
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change in producer expectations

producers expect corn prices to be substantially lower later this year.

6
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change in no. of sellers

thousands of new farmers begin to grow corn