Posted by Cathy on Monday, May 11, 2009 at 6:57pm.
Could you please check these thanks.
Directions: Supply can decrease and increase depending upon several factors. Also you must put if that factor increase/decreases amount of supply, if the supply curves to the left/right, and if the cost to produce is increasing/decreasing
Factors:
Cost of resources (decreasing):
Amount of supply: decreases
Supply shift curve: right
Cost To Produce: decreases
Cost of resources (increasing):
Amount of supply: increases
Supply shift curve: left
Cost to produce: increases
Productivity (decreases):
Amount of supply: increases
Supply shift curve: left
Cost to produce: increases
Productivity (increases):
Amount of supply: decreases
Supply shift curve: right
Cost to produce: decreases
New Technology/Speed of production (increases):
Amount of supply: increases
Supply shift curve: right
Cost to produce: decreases
Higher taxes:
Amount of supply: decreases
Supply shift curve: left
Cost to produce: increase
Lower taxes:
Amount of supply: increases
Supply shift curve: right
Cost to produce: decrease
Government pays subsidy:
Amount of supply: decreases
Supply shift curve: left
Cost to produce: increases
Demand Expected (increases):
Amount of supply: decreases
Supply shift curve: left
Cost to produce: increases
Demand Expected (decreases):
Amount of supply: increases
Supply shift curve: right
Cost to produce: decreases
- Economics - economyst, Tuesday, May 12, 2009 at 10:23am
A decrease in supply shifts the supply curve to the left. An increase to the right. -- Check number 1
A government subsidy lowers production costs -- should increase supply.
In general, changes in demand should not affect supply or the supply curve. However, one could make the argument that an increase in EXPECTED demand means an increase in expected prices which means firms will expand capacity -- thats is, increase supply
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