Supply — Important Questions

Cost of production, Level of technology, Future price expectations, Number of firms

Factors affecting supply include cost of production, technology level, future price expectations, and number of firms. Consumer income affects demand, not supply.

Positive

The supply curve has a positive slope because of the positive relationship between price and quantity supplied. As price rises, quantity supplied increases.

Increase in supply due to price rise

Expansion of supply occurs when quantity supplied increases due to a rise in price, while other factors remain constant. It's movement along the same supply curve.

Rare goods like ancient coins, Perishable goods like milk

Rare goods (ancient coins, manuscripts) and perishable goods (milk, vegetables) are exceptions because their supply doesn't respond normally to price changes.