Introduction to Economics 1 Deneme Sınavı Sorusu #590108

The price of pistachios (antep fıstığı) has recently increased three times. This condition has led baklava producers to stop the production of pistachios baklava.


Which of the following is the determinant of the supply of pistachios baklava in this example?


Technology

Input prices

Expectations

Number of sellers

Number of buyers


Yanıt Açıklaması:

There are a number of factors that lead to an actual change in the supply of a product. For example, when the input prices go up, the profits of the producers change in the opposite direction. That is the reason why baklava producers halt production in our example. Simply because their profit falls due to a rise in input prices, they are no more willing to sell it. The correct answer is B.

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