After you have worked through this section of the learning unit, you should be able to:
- identify the non-price factors of supply
Non-price supply factors are all those factors, apart from the price of the good, that influence the supply of the good.
These are factors such as the:
• price of inputs (cost of production)
• prices of alternative goods
• technology needed to make the good
• expected prices
• number of suppliers
Let us consider the impact of a change in the price of inputs (cost of production).