Question

select all the correct answers.
which of the following are non-price determinants of supply?
□ new producers entering the market
□ government taxes and subsidies
□ effect of mass media advertising
□ cost of the product or services
□ future expectation of prices

Explanation:

• Non - price determinants of supply are factors that affect supply other than the price of the good itself.
• New producers entering the market: More producers mean more supply, and this is not related to the price of the product, so it is a non - price determinant.
• Government taxes and subsidies: Taxes increase production costs (decrease supply) and subsidies decrease production costs (increase supply), and they are not about the price of the product, so they are non - price determinants.
• Effect of mass media advertising: Advertising mainly affects demand (by influencing consumers' desire to buy), not supply, so it is not a non - price determinant of supply.
• Cost of the product or services: The cost of the product is related to production but the "cost of the product" here is a bit ambiguous. However, the price of the product is a price - related factor for supply (the law of supply is about price and quantity supplied). And it is not a typical non - price determinant like the other correct options.
• Future expectation of prices: If producers expect prices to rise in the future, they may decrease current supply; if they expect prices to fall, they may increase current supply. This is not related to the current price of the product, so it is a non - price determinant.

Answer:

A. new producers entering the market, B. government taxes and subsidies, E. future expectation of prices