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A change in supply (a shift in the supply curve) occurs whenever some factor that affects the supply of the good, other than its price, changes. Such variables include:
1. Prices of productive resources. A rise (fall) in the prices of resources shifts the supply curve leftward (rightward).
2. An increase in technology shifts the supply curve rightward.
3. An increase (decrease) in the number of suppliersshifts the supply curve rightward (leftward).
4. Prices of other goods produced, which have two possible relationships:
a) When the price of a substitute in production rises (falls), the supply curve for the good shifts leftward (rightward).
b) A rise (fall) in the price of a complement in production shifts the supply curve rightward (leftward).
5. If the expected future price of the product rises (falls), the supply curve in the present period shifts leftward (rightward).
A change in supply also affects the price and quantity of the product.
1. An increase in supply (a shift rightward of the supply curve) causes the price to fall and the quantity to increase.
2. A decrease in supply (a shift leftward in the supply curve) causes the price to rise and the quantity to decrease
What else can I help you with?
What are the factors affecting abnormal suppy curve?
Several factors can affect an abnormal supply curve, including production costs, technological advancements, and government regulations. Changes in input prices can shift the supply curve, as can external shocks like natural disasters or geopolitical events. Additionally, market expectations and the number of suppliers in the market can influence supply dynamics. Lastly, factors like taxes and subsidies can also lead to shifts in the supply curve.
What factors determine the shape of the long run supply curve in perfect competition?
The shape of the long run supply curve in perfect competition is determined by factors such as technology, input prices, and economies of scale. These factors influence the ability of firms to produce goods efficiently and at different levels of output, which in turn affects the overall shape of the supply curve.
What is difference between individual supply curve and market supply curve?
The difference between individual supply curve and the market supply curve is tat individual supply curve is like a firm. To be able to get the market supply curve you have to have the individual supply curve.
What factors cause a shift to the right in the aggregate supply curve?
ask your mom!
What Factors that cause supply curve to shift?
Factors that cause the entire supply curve to move either left or right are called the determinants of supply.These include:Expectations of suppliersPrice of resourcesNumber of suppliersTechnologyTaxes/SubsidiesPrices of other resources produced
What are the factors affecting abnormal suppy curve?
Several factors can affect an abnormal supply curve, including production costs, technological advancements, and government regulations. Changes in input prices can shift the supply curve, as can external shocks like natural disasters or geopolitical events. Additionally, market expectations and the number of suppliers in the market can influence supply dynamics. Lastly, factors like taxes and subsidies can also lead to shifts in the supply curve.
What are the factors affecting supply of cars?
Demand
What factors determine the shape of the long run supply curve in perfect competition?
The shape of the long run supply curve in perfect competition is determined by factors such as technology, input prices, and economies of scale. These factors influence the ability of firms to produce goods efficiently and at different levels of output, which in turn affects the overall shape of the supply curve.
What is difference between individual supply curve and market supply curve?
The difference between individual supply curve and the market supply curve is tat individual supply curve is like a firm. To be able to get the market supply curve you have to have the individual supply curve.
What factors cause a shift to the right in the aggregate supply curve?
ask your mom!
What Factors that cause supply curve to shift?
Factors that cause the entire supply curve to move either left or right are called the determinants of supply.These include:Expectations of suppliersPrice of resourcesNumber of suppliersTechnologyTaxes/SubsidiesPrices of other resources produced
How is a market supply curve similar to and different from an individual supply curve?
how is a market supply curve similar to and diffrent from an individual supply curve
What are the factors affecting real estate?
Location Location Location...then supply and demand.
What factors influence the short run aggregate supply curve?
Factors that influence the short run aggregate supply curve include changes in input prices, technology, government regulations, and expectations of future prices. These factors can impact the cost of production and the ability of firms to supply goods and services in the short term.
Factors affecting demand and supply of labor?
Factors affecting demand of labor :1) Wage rates fluctuations2) The need of factor input in a firm varies with time3) Increasing training costsFactors affecting supply of labor:1) Competitive labor market2) Working condition3) Inflation
What factors affect demand and supply in health care?
please give me the ans. of factor affecting demand and supply of health
What is difference between change in supply and change in quantity supplied?
a change in supply is the shift in supply curve due to change in price of other commodities and other factors like taste,weather,income e.t.c while a change in quantity supply is the change in price of the commodity itself that affect the quantity supply,here the supply curve remain constant but there will be a movement along the supply curve.
