Discuss the factors that should motivate a producer to supply more of a commodity.

Explanation

Factors that should motivate a producer to supply more of a commodity are:

(i)Price of the commodity.The higher the price, the higher the quantity supplied

(ii)Technology: An improvement in technology which results in the reduction of .cost of production leads to an increase in the quantity of the commodity supplied

(iii) Cost of production: A decrease in the cost of production ensures that a larger quantity will be produced and supplied.

(iv) Government policy:Subsidy given to farmers, in terms of free importation of equipment will affect supply.

(v)Weather: If the weather of a particular area is favourable at a particular period, more agricultural products will be produced and their supply to the market will increase

(vi) Prices of other commodities: The supply of a commodity will be affected if the prices of other commodities rise. An increase in the price of a commodity will encourage more production of other commodities.