Determinants of supply are things that shift a supply curve to either the left or the right if they change. Determinants of supply include Resource prices, technology, taxes and subsidies, prices of other goods, price expectations, and number of sellers in the market. Resource prices are a determinant of supply because if the price of the resources used in production of a product is low, then supply will be higher because the product will be cheaper to produce, and vice versa. Prices of other goods is a factor of production because if a company makes motor vehicles, and the price of motorcycles goes way up, then the company will produce less cars and more motorcycles, shifting the supply curve for cars to the left. Technology affects supply because increases in technology lower the cost of production, shifting the supply curve to the right.

Taxes and subsidies affect supply because an excise tax makes goods more expensive to produce, and subsidies make goods cheaper to produce, shifting the supply curve. Price expectations affect supply because suppliers supply less if they expect the price to go up soon, since they could sell it for more in the future. An example of this in the real world is that it's possible that oil companies reduce supply based on what they expect the price to be in the near future. The number of sellers in the market is a determinant of supply because less producers produce less total, and more producers produce more total.

An excise tax on cigarettes makes it more expensive to produce them, shifting the supply curve to the left
An excise tax on cigarettes makes it more expensive to produce them, shifting the supply curve to the left




The less oil there is, the higher its price is, which shifts the supply curve
for plastic to the left, since oil is used to make plastic.

http://en.wikipedia.org/wiki/Supply_and_demand#Supply_curve_shifts
http://www.netmba.com/econ/micro/supply/curve/
http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=supply+determinants

Which of the following isn't a determinant of supply?
A. Technology
B. Taxes and subsidies
C. Price expectations
D. Past price






Answer: D