Name: Pedro Henrique Barreto Buzatto

Date: 04/10/2019

Classroom Teacher: Donald Sbrocco

School: Centro Educacional Leonardo da Vinci

In your opinion, which is the most important factor in determining a supply?

Explain.

The supply, which is the amount of a specific product producers will sell in a

time, have its own determinant factors. These factors are composed by the price of

inputs, numbers of seller in the market place, taxes and technology. All those

elements are very important on determining if the supply will increase or not, but in

my opinion, the number of sellers in the market place is the most influent one. That

is because companies always want to have the best product, in terms of quality

and cost benefit. When the quality of the products of two companies are very good,

they try to sell more using the cost benefit method, so the companies increases the

supply of the product, with the intention to make it cheap, and this become a cycle,

because people will buy more of it, the company will grow, and so the supply. One

example of it is Coke and Pepsi, beside the taste, which is very similar, people will

buy the one that is cheaper, which is Coke, that is a bigger company, that has a

higher supply, and lower prices.