Question

Supply is a powerful force in a free market.

In two to three sentences, explain some of the factors
that cause shifts in supply and what effects these shifts
may have.

Answer 1

Negative shifts in supply can be caused by natural disasters, for example if there is a tornado that has damaged tree growth, a paper company would struggle to produce the same amount as before. This would lead to a higher cost for consumers. Some positive shifts can be caused by modifying a product. For example if a farming company modifies their corn seeds to yield more than one crop per grow cycle, there would be more product to sell while using the same amount of seeds as the original crop. This will lower production costs for the farmers and increase the supply for consumers.

Step-by-step explanation:

just passed the assignment on e2020. 100%

Answer 2

Input prices, number of sellers, technology, natural and social factors, and expectations.

Step-by-step explanation:

Input in prices: When the prices go up supply will fall because lower quantities will be demanded.

Number of sellers: When the number of sellers are more, it will affect sales which is supply.

Technology: This helps in making supply to be properly done. Latest technology such as waybill, email, uber drivers, dispatch via logistics companies, shipment, air cargo carriers and a lot more.