Non-price Determinants of Supply
Supply
AO2
Syllabus requirement
Factors that shift the supply curve: changes in factor costs, prices of related goods, indirect taxes/subsidies, expectations, technology, and number of firms.
Assessment objectives
AO2 Application and Analysis
Summary
This topic explains the non-price determinants of supply — the factors other than the product price that shift the supply curve. It covers how changes in production costs, related goods (competitive and joint supply), indirect taxes and subsidies, future price expectations, technology, and the number of firms affect the quantity supplied at each price. Understanding these determinants is essential for explaining supply shifts and market outcomes in IB Economics.
