Question

in microeconomics ,price helps determine both quantity supplied and quantity demanded. which other factors help determine each other?

Answer 1

There are different factors that affect quantity supplied and quantity demanded. Quantity supplied is known by production cost, while in quantity demand it is determined by desire or need for the product.

For quantity demanded the other factors are:income of buyers, quality of the product, season, number of consumers, tastes and preferences, and price of related products.

For quantity supplied, the other factors are: cost of production, availability of raw materials, number of sellers, technology, and taxes and subsidies.