Which of the following can be a supply factor that impacts the market?

Study for the SQA National 5 Economics Exam. Engage with flashcards and multiple choice questions, each featuring hints and comprehensive explanations. Prepare confidently for your exam!

The number of firms in the market is a crucial supply factor that impacts the overall market supply. When the number of firms increases, competition typically raises the total amount of goods and services produced, as more businesses enter the market to capture consumer demand. This increase in competition can lead to lower prices and greater availability of products. Conversely, when firms leave the market, the overall supply diminishes, potentially resulting in higher prices and less choice for consumers.

While the other options, such as changes in consumer tastes and cultural trends, affect demand rather than supply, supply chain disruptions can certainly impact the ability of firms to provide their goods. However, the direct relationship between the number of firms and market supply makes this option a more fundamental supply factor compared to the others listed, which tend to influence the supply indirectly.

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