If the number of customers in the market increases suddenly, the suppl...
In a very short period, supply is fixed as suppliers cannot increase the supply of a commodity. Since, in a very short period price is determined by demand only (supply being constant), thus the price that prevails in the very short period is called market price. Hence if the number of customers in the market increases suddenly, the supply will not be affected.
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If the number of customers in the market increases suddenly, the suppl...
Explanation:
When the number of customers in the market increases, it does not necessarily mean that there is an increase in demand for goods and services. Therefore, the supply will not be affected by a sudden increase in the number of customers.
Factors affecting supply:
There are several factors that affect the supply of goods and services in the market. Some of these factors include:
- Price of inputs: The cost of production is a significant factor that affects the supply of goods and services. If the cost of inputs such as labor, materials, and energy increases, the supply of goods and services is likely to decrease.
- Technology: The level of technology used in production also affects the supply of goods and services. An improvement in technology can lead to an increase in supply, while a decline in technology can lead to a decrease in supply.
- Government policy: Government policies such as taxes, subsidies, and regulations can also affect the supply of goods and services. For example, if the government imposes a tax on a particular product, the supply of that product is likely to decrease.
- Natural disasters: Natural disasters such as floods, earthquakes, and hurricanes can also affect the supply of goods and services. These events can damage infrastructure, disrupt transportation, and affect the production of goods and services.
Conclusion:
In conclusion, the supply of goods and services is not directly affected by an increase in the number of customers in the market. However, other factors such as price of inputs, technology, government policy, and natural disasters can affect the supply of goods and services. Therefore, it is important to consider all these factors when analyzing the supply of goods and services in the market.
If the number of customers in the market increases suddenly, the suppl...
Increase because supply is directly proportional to demand of a customer
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