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• A supply schedule or curve shows that, other things equal, the quantity of a good supplied varies directly with its price.

• The supply curve shifts because of changes in (a) resource prices, (b) technology, (c) taxes or subsidies, (d) prices of other goods, (e) expec tations of future prices, and (f) the number of suppliers.

• A change in supply is a shift of the supply curve; a change in quantity supplied is a movement from one point to another on a fixed supply curve.

Part One • An Introduction to Economics and the Economy

SUPPLY aND DEMaND: Market EquiLiBRiuM

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