Identify the NonPrice determinants of supply in the dentistry field.(per factor) NonPrice Determinants of Supply1. Cost of production• Supply is highly dependent on the cost of production. Firms canincrease their output when the prices of inputs decrease. Conversely,output tends to decrease when production costs increase. Plans for2expansion of capacity are jeopardized by increasing costs ofproduction.2. Number of suppliersSupply is also dependent on the number of sellers. When new firmsbegin to operate, they bring in additional supply to the market,increasing the total available supply. In contrast, the withdrawal ofexisting firms reduces the amount of supply in the market.3. Prices of goods and services• The prices of some goods and services affect the supply of other goodsand services. If a producing firm, for instance, finds that the price of itscurrent output has gone down considerably, it may chanc:"products to a new one.4. Taxes and subsidiesPayment for taxes is an added component of the cost of production.Higher taxes mean higher production costs. And firms are discouragedto produce more goods and services. Subsidies are money given tofirms by the government to help them maintain their current ordesigned output. The money received by firms effectively reduces theircost of production, and they are encouraged to produce more goods3/5and services.5. Technology• Improvements in technology make possible the production of goodsand services at lower costs.Vhen these are adapted by firms, they willbe able to produce more.SummaryThe market is a powerful mechanism used to provide answers to thefundamental economic problem. The market consists of buyers andsellers whose actions and decisions are translated into supply anddemand.Demand is highly dependent on price. The other factors affecting thedemand are needs, preferences, income level, expectations aboutthe future, prices of related commodities, the buyer's situation, andothers.Supply is also highly dependent on price but is also affected by otherfactors like cost of production, number of suppliers, prices of relatedgoods and services, taxes and subsidies, and technology.::

The supply curve shows the direct relationship between two variables: price and quantity supplied.…

Answered: Identify the NonPrice determinants of…

Identify the NonPrice determinants of supply in the dentistry field. (per factor)

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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