Multiple choice

Which of the following is not a determinant of supply?

  1. Price of the commodity

  2. Price of related commodities

  3. Elasticity of supply

  4. State of technology

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Price of the commodity affects quantity supplied (movement along supply curve), not supply itself. Price of related commodities and technology are determinants. Elasticity of supply is a measure of responsiveness, not a determinant - it's the outcome, not the cause. Supply shifts are caused by factors other than the good's own price.

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