Which of the following factors would NOT affect supply?

Study for the Indiana RECP Comprehensive Test. Utilize flashcards and multiple-choice questions, each with hints and explanations. Prepare to ace your exam!

The correct answer identifies a factor that does not directly impact the supply side of a market. Supply pertains to the quantity of a good or service that producers are willing and able to offer for sale at various price levels. Factors that can influence supply include construction costs, government regulations, and the availability of the labor force, all of which directly affect a producer's ability to produce goods or services.

Population, while an important variable in determining demand—because it directly impacts the number of consumers in a market—does not directly affect the supply of goods or services. Increases or decreases in population may create more or less demand, but they do not change the existing supply directly; rather, the supply responds to changes in consumer demand.

In contrast, construction costs influence supply by affecting how affordable or feasible it is for developers to build properties. Government controls, such as zoning laws or building permits, can restrict or enhance supply by creating barriers or providing incentives for production. The labor force is essential too, as the availability and skills of workers directly impact how much producers can supply to the market. Thus, these three factors can actively influence the supply dynamics in a market, whereas population primarily relates to demand.

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