Topic > Four factors influence the demand for automobiles - 1000

When the price of raw materials rises or falls, the production of coatings will also rise or fall. Second, the price of substitute products also influences the supply curve. Since relative products are a competitive relationship, when the price of one product increases, another will decrease. It will affect supply. Third, production technology will influence the supply curve. As the level of technology increases or decreases, production costs will decrease or increase. finally, government policies will influence the supply curve. Positive policies will increase supply, on the contrary, they will decrease it. For example, if the government limits the amount of cars people can buy, this will cause the supply curve to fall. Furthermore, the future price of the product and the development of the producing company will also influence the supply