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Lecture

change in supply.docx

4 Pages
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Department
Economics
Course Code
ECON 101
Professor
Wokia Kumase

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Sept.20 Mid-term 1: Chapter 1 2 3 4 Attend the study group! **FACTORS THAT CHANGE SUPPLY OF A GOOD 1.Prices of factors of production. Price does not depend on the marginal cost. That’s the quantity that decides the marginal cost. * if the cost of production drops, and we have less marginal cost. * an increase in price will lead to the supply curve to shift to the right. *Butter& M If the price of M goes up, then we demand more butter. So the demand curve will shift to right. 2.prices of related good produced. *Subs in Production: Salads and smoothies. If the price of smoothies goes up, then the quantity supplied of smoothies will increases. So we need more workers from producing salads to produce smoothies. So the supply curve of salads will shift to the left.(the price of salads remains the same, but the quantity supplied decreases.) Pay attention to subs in production and complements in production. * complements(once you produce A, you need to produce B) in Production Beef& cow-bide If the price of beef goes up, then the production of beef will increase. And the supply curve of cow-bide will shift to the right.(the price remains the same, but the quanti
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