Question

Identify four shift factors of supply with the correct explanation of how each affects supply. Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box. When new production technologies are introduced the cost of production falls and supply increases. unanswered Change in consumer tastes. As the taste for a product rises, supply increases. unanswered Change in taxes paid by producers. As the amount of taxes that producers pay increases, supply decreases. unanswered Producers expect prices of their products to change in the future. As the price that producers expect to sell their products for increases, supply decreases. unanswered The price of inputs changes. As the price of inputs rises, supply decreases. unanswered Reduction in taxes paid by consumers. As taxes rise, supply falls. unanswered Income declines. As income rises, supply increases.

Answer 1

Answer:

Changes in consumer tastes. As the taste for a product rises, demand increases.

Change in taxes paid by consumers. As taxes rise, demand falls.

Income declines. As income rises, demand for a normal good increases

The price of a related consumer good changes. As the price of a complement falls, demand increases.

Explanation:

The four shift factors of supply that affects supply are

1. Change in tastes of consumer

2. Change in taxes paid by consumers

3. Change in income

4. Change in price of a commodity.

Change in tastes of consumer affects the preference of a product. If the change is positive, the demand increases which also increases the supply. If otherwise, the demand falls and this reduces the supply of that product.

Change in taxes paid by consumers;

The consumers are the final users of every commodity. The higher the consumers are taxed, the lower they demand for commodities. If the demand for a product or commodity is low, the supply is also expected to be at a low level.

Change in income;

This particularly affects the first condition. When income changes (increases), the final consumers will tend to request for more products, increasing the demand for that product. Once the demand is increased, the supply will also increase. If the income also decreases, the demand and supply will also decrease.

Change in price;

The higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded for the product.

So, if there's any change in price (whether increasingly or otherwise), the demand will be altered and the supply will be affected.