Managerial Economicsintermediate
Which of the following is a non-price determinant that shifts the market supply curve? (Select all that apply)
Answer
Improvements in production technology
Explanation
### Why this is right
- **Production costs** affect the cost of producing and offering output.
- **Prices of by-products** can affect the incentive to produce the primary product.
- **Available productive capacity** limits how much output can be supplied.
- **Technology** can reduce unit costs and support greater supply.
- **Weather** affects production, especially agricultural output.
### The concept
Supply depends on producers' incentives and ability to bring goods to market. Own price creates movement along the supply curve, while these other influences can shift the curve. Weather may have complex effects: both drought and excessive rainfall can harm agricultural production.
### The other options
- **Consumer fashion**: this is a demand determinant, not one of the supply determinants listed in the note.
### Remember
Supply shifters change producers' costs, capacity, or production conditions.
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