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supply (Non Price factors (Restrictions on trade, Other related goods…
supply
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Examples of
Legal Factors
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Decrease
Laws of shop opening hours, employment law, safety law, factory zoning law, etc.may increase costs of production
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Restrictions on trade
Increase
Trade Embargoes, Tariffs, Quotas, or other restrictions are removed from firms exporting and importing
Decrease
Trade Embargoes, Tariffs, Quotas, or other restrictions are placed on a firms ability to export and import
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Costs of production
Increase
Costs of production may decrease in costs of resources decrease or production becomes more efficient.
Decrease
Costs of production may increase if costs of resources increase or production becomes less efficient.
Cultural factors
Increase
If the number of Asians in New Zealand increase, more rice may be produced and charged.
Decrease
If the number of Samoans in New Zealand decreased, less Taro will be produced.
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Law of Supply
As price increases, quantity supplied increases, visa versa, ceteris paribus.
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As price increases, the good becomes relativity more profitable and the supplier is more able to cover the costs of production, visa versa, cereris paribus
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Productivity
Productivity is the rate of output per rate of input ( every business is looking to maximize output and minimize input ) EFFICIENCY!
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