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This is due to an expansion(contraction) of the supply curve. i.e. the suppliers are willing to produce more(less) for the same level of price than before.
This can be due to many factors such as a tax cut, better technology allowing more efficient production, natural disaster.....
In short, any factors expect price would shift the entire supply curve to the right(expansion) or to the left(contraction)
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∙ 13y ago
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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What happens to a supply curve if a tax on a good is repealed?
The supply curve of that good will increase or move to the right because the cost of production will have decreased.
What happens to the demand curve when determinants change?
A change in any one or more of these determinants of supply, or supply shifters, will move the supply curve for a product either right or left.
A change in any one or more of these determinants of supply or supply shifters will move the supply curve for a product either right or left. True or False?
True
Does Economies have a self correcting mechanism for inflationary and recessionary gaps Expain?
Yes they do. In an inflationary gap the equilibrium with the aggregate demand and the short run aggregate supply curves is higher than the long run aggregate supply curve. Eventually, the short run aggregate supply curve will slowly move to the left towards equilibrium. Output in an inflationary gap cannot be held up. This is not usually allowed, usually monetary and fiscal policies work to move the aggregate demand. In a recessionary gap, the opposite will happen. The short run aggregate supply curve will move to the right slowly towards equilibrium because the natural rate of unemployment is higher than the actual rate of unemployment so people will be willing to work for less.
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 happens to a supply curve if a tax on a good is repealed?
The supply curve of that good will increase or move to the right because the cost of production will have decreased.
What happens to the demand curve when determinants change?
A change in any one or more of these determinants of supply, or supply shifters, will move the supply curve for a product either right or left.
What happen to demand curve when determinants change?
A change in any one or more of these determinants of supply, or supply shifters, will move the supply curve for a product either right or left.
A change in any one or more of these determinants of supply or supply shifters will move the supply curve for a product either right or left. True or False?
True
What is the task of the respiractory system?
To move Blood through-out the entire human body and supply the blood with rich oxygen
Why would an expansionary gap lead to a change in inflation Why would a recessionary gap lead to a change in inflation?
Assuming that the aggregate demand curve does not move, the only way for the gap to be closed is by a shift in aggregate supply. These gaps cause a change in inflation expectations, moving the AS curve left (exp) or right (rec) back to long term equilibrium and changing the inflation rate.
Does Economies have a self correcting mechanism for inflationary and recessionary gaps Expain?
Yes they do. In an inflationary gap the equilibrium with the aggregate demand and the short run aggregate supply curves is higher than the long run aggregate supply curve. Eventually, the short run aggregate supply curve will slowly move to the left towards equilibrium. Output in an inflationary gap cannot be held up. This is not usually allowed, usually monetary and fiscal policies work to move the aggregate demand. In a recessionary gap, the opposite will happen. The short run aggregate supply curve will move to the right slowly towards equilibrium because the natural rate of unemployment is higher than the actual rate of unemployment so people will be willing to work for less.
What happens when quantity supply exceeds quantity demand?
Graphically, the Y axis is price and the X axis is quantity. The demand curve slopes downward, while the supply curve slopes upward. When quantity demanded exceeds quantity supplied the market is out of equilibrium. As a result, the price of goods increases, thereby decreasing the quantity demanded. This is characterized as a move up along the demand curve and not a shift. Changes in endogenous variables, ie price and quantity, are just movements along the curve.
You move along a given demand curve?
Which is the following example of factor that would move a demand curve? A) increase gst b)decrease in cost of raw material c)decrease in subsidy d)decrease in price of complemantery goods
If you shoot a gun can you curve the bullet?
no it is pretty impossible to cuve the bullet because if you move the gun as you pull the trigger the bullet would just move in that direction.
Why are wind appear to curve?
the curve because the power of the wind is making it move in a curved path
