Non-price Factors Of Supply

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).