Question

Which one of the following is not a non-price determinant of supply? Select one: O a. Available production technology b. Consumers' income c. Resource prices d. The number of producers O o e. The price of related goods and services

Answer 1

Since the law of supply stats that there is a direct relationship between price and quantity supplied and other factors which affect the supply remains same.

The supply curve shows the direct relationship between price and quantity supplied. The determinants are;

Technology, costs of inputs and number of potential suppliers. Since these factors determine the supply of goods and services in the market.

Hence available production technology and resource price are two non-price determinant of supply.

Hence option a and c both are correct answer.

2.

The term which is used for negative relationship is an inverse relationship.

For example for describing the negative relationship between price ans quantity demand is also written as there is an inverse relationship between price and the quanitity demand.

Hence option b is the correct answer.