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2. Factors Affecting Individual Supply
  A. Cost
The higher the cost of production, the smaller the supply of a good / resource, and vice versa. Cost can be affected by :
  Cost of production
Cost of production
State of technology : improved technology helps to raise productivity. This lowers the cost of production.
Technology may affect the supply
Prices of resources : if prices of resources rise, the cost of production will rise.
  B. Supply of key resources
Disrupted supply of a raw materials : Shortage of raw materials will decrease the supply of a good.
  Raw Material
Raw material - e.g. Woods
Change in the demand for a good in joint supply : Joint supply refers to s situation in which the production of a good results in the production of another good (i.e. by-product).
if there is an increase in the demand for beef, more cows will be slaughtered. As this will increase the supply of cows' skin, it also stimulates the leather industry.
By-product of cow
By-product of cow
  C. Goverment policy
Taxation and SubsidyMean : Tax imposed on a product will add the cost of production and reduce the supply. Conversely, if the goverment subsidizes a product, its supply will increase as the cost of production is reduced.
Quota : The goverment may restrict the supply of a certain product by imposing a quota, i.e. setting limit on the quantity to be produced.
Goverment policy - Taxation, Subsidy and Quota
  D. Weather
  Weather may affect the supply of goods
  e.g. bad weather affects the supply of crops.
  Bad Weather
Weather may affect the supply
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