Factors determining Supply:
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Price of the product: As price of the product increases, its supply will extend.

Prices of other products: Any change in the prices of other products will influence the supply. An increase in the price of other products will influence the producer to shift the production in favour of that product. Supply of the original product will be reduced.

Production technology: State of production technology affects the supply function. If advanced technology is used in the country, large scale production is possible. Hence supply will increase. Old technology will not increase the supply.

Prices of inputs: When the prices of inputs rise, cost of production will increase. This will result in a decrease in supply.

Number of producers: If the number of producers producing the product increases, the supply of the product will increase in the market.

Future price expectations: If producers expect that there will be a rise in the prices of products in future, they will not supply their products at present.

Taxes and subsidies: If tax is imposed by the government on the inputs of a commodity, cost of production will go up. Supply will be reduced. When subsidy is given to the producer, it will encourage them to produce and supply more. Subsidy means a part of the cost of a commodity will be borne by the government.

Non-economic factors: Non-economic factors like, war, political climate and natural calamities create scarcity in supply.