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If there is more tax on certain products, then most companies will not produce large quantities of the product. So, if taxes increase for certain products, then the products will have a higher price and there will not be a large amount of them. On the other hand, certain subsides from the government would cause resource prices to be lower...
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On the other hand, certain subsides from the government would cause resource prices to be lower. This would cause a lower price and a larger amount of supply.
The last two remaining factors have to deal with the producers alone. Expectation of producers and prices of other goods the firm could produce deal with how the producers run their company...
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