Determinants of Goods Supply

The supply of goods in the market is influenced by various factors. These factors are known as determinants of supply and help in understanding the behavior of producers in the market. The following are the determinants of goods supply:

a) The cost of labour used to produce the good
b) The technology used for production
c) The number of sellers of the good
d) The income of the consumers who buy the good

Explanation of each option:

a) The cost of labour used to produce the good: This determinant refers to the wages and salaries paid to the workers involved in the production of goods. If the cost of labor increases, it will lead to higher production costs for the producers. This may result in a decrease in the supply of goods.

b) The technology used for production: The technology used in the production process plays a crucial role in determining the supply of goods. Technological advancements can lead to increased productivity and efficiency, allowing producers to supply more goods at a lower cost. On the other hand, outdated technology can limit the production capacity and decrease the supply of goods.

c) The number of sellers of the good: The number of sellers in the market also affects the supply of goods. If there are more producers or sellers of a particular good, the overall supply in the market will be higher. Conversely, if there are fewer sellers, the supply of goods may be limited.

d) The income of the consumers who buy the good: This option is not a determinant of goods supply. The income of consumers is related to the demand for goods, not the supply. The income of consumers determines their purchasing power and ability to buy goods, but it does not directly impact the producers' decision to supply goods.

Conclusion:

In conclusion, the correct answer is option 'D' - the income of the consumers who buy the good. While the income of consumers is an important factor in determining the demand for goods, it is not a determinant of goods supply. The determinants of goods supply include the cost of labor, technology, and the number of sellers in the market.