Answer to Question #123917 in Economics for Syed Awais Shah

Question

what are the major factor ( other than price ) which effect the supply of any producers explain with real words example ?

Answer 1

interest rate - the lower the cost of the loan, the easier to become a new producer. Increased competition freedom the reason for the fall prices.

demand - a change in demand leads to a change in supply. As the volume of supply as prices

money supply - if there is not enough money supply, trade is reduced, which affects producers badly