What Factors Affect The Supply Of A Commodity?
There exist several factors, which can affect the supply of a commodity. All of the factors are not equally applicable in all the cases. Following are the major contributing factors, besides the unforeseen natural calamity and war, affecting the supply of a commodity: (a) Production. Production is the major factor that controls the supply of a commodity. If there is less production or no production then certainly the supply of that commodity gets disturbed. With enough production, the item becomes easily available in the every store of the market. (b) Demand. Demand for a particular commodity necessitates arrangement for more production and supply to the market. (I don’t know who has invoiced for more human being forcing the production to put at the war footing!). (c) Cost. If cost is reduced, demand becomes more and thereby necessitating more supply of the commodity. Do you purchase more potato when the rate goes high? Then why to supply more? (d) Transport system. A good transport sy
