Factors influencing supply
Channel: econom
Date: 2015-11-24

An important factor is the price of the good or service. The higher the price of a good and service the higher is the quantity supplied and the lower the price the lower is the quantity supplied and therefore a positive relationship exists between the price and quantity supplied.
Supply is the quantities of a good or service that suppliers plan to supply during a certain period.
The higher the cost of production the lower the supply and vice versa. Technology that changes the cost of production will also have an important impact.
The price of alternative products will also have important impact. The price of substitutes in production such as fried chicken burgers will influence the supply of fried chicken pieces. The higher the price of chicken burgers the lower the supply of fried chicken pieces.
Other factors such as number of suppliers, expected prices and the weather will also influence the supply of a good or service.