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What effect would a decrease in production costs for all firms have on the aggregate supply curve?
the curve would shift to the right
Explain the effect an increase in the retirement age would have on a country's ppf curve?
An inrease in the retirement age would effectively increase a country's labor supply, shifting the production possibilities curve right.
Which direction would the supply curve shift if there was a decrease in supply?
leftward
Is demand needed in equilibrium?
Yes. Equilibrium is created at the intersection of the Demand curve and Supply Curve. Equilibrium can be shifted if the Demand curve increases or decreases, and the same happens when the Supply curve increases or decreases. Without demand, you would just have a Supply curve.
Which will not cause the supply curve to shift?
A change in price level would cause movement along the demand curve, but would not cause the curve itself to shift.
What effect would a decrease in production costs for all firms have on the aggregate supply curve?
the curve would shift to the right
Explain the effect an increase in the retirement age would have on a country's ppf curve?
An inrease in the retirement age would effectively increase a country's labor supply, shifting the production possibilities curve right.
Which direction would the supply curve shift if there was a decrease in supply?
leftward
Is demand needed in equilibrium?
Yes. Equilibrium is created at the intersection of the Demand curve and Supply Curve. Equilibrium can be shifted if the Demand curve increases or decreases, and the same happens when the Supply curve increases or decreases. Without demand, you would just have a Supply curve.
Which will not cause the supply curve to shift?
A change in price level would cause movement along the demand curve, but would not cause the curve itself to shift.
If automobile workers went on strike causing a decreased supply of cars the supply curve would shift inward to the left and?
there would be an eventual upward movement along the demand curve, reestablishing equilibrium
If automobile workers went on strike causing a decreased supply of cars the supply curve would shift inward to the left and .?
there would be an eventual upward movement along the demand curve, reestablishing equilibrium
What is a perfectly inelastic supply curve?
A perfectly inelastic supply relation would be defined as one where the quantity produced remains static under any price change. If we'd plot this curve in the familiar demand-supply framework with price being on the y-axis and quantity on the x-axis, the curve would be vertical.
A purely competitive firm's short-run supply curve is?
Because of the price taking nature of the firm in the perfectly competitive market. The supply curve would be the portin of the (Marginal Cost Curve) that disects the (P=Ar=Mr curves). Som from that point up would be the supply curve, to produce below that point would not be beneficial to the establishment. Up sloping and equal to the portion of the marginal cost curve that lies above the average variable cost. The demand curve is also perfectly elastic, this too contributes to the fact.
If a supply-demand curve were applied to basic resources?
Their prices would increase.
If a supply-demand curve were applied to basic resource?
Their prices would increase.
How do you Explain the difference between change in supply and change in quantity supplied?
A change in supply means that the supply curve has shifted. With a stable demand, this will result in a change in the quantity supplied but also a change in price. A change in only quantity supplied without a change in supply would require a horizontal supply curve. Alternatively a change in quantity supplied and price may occur if there is a shift of the demand curve.
