ECON 1 Lecture Notes - Lecture 26: Economic Equilibrium, Opportunity Cost

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Supply: how much producers are willing and able to offer for sale per period at each possible price, other things constant. Law of supply: quantity supplied is usually directly related to price. Higher price, higher quantity supplied(higher reward, profit) More willing to increase quantity supplied and more able because can afford to cover higher marginal costs if pattern of increasing opportunity cost applies. Supply curve: slopes upward because producers offer more at a higher price than lower price. Quantity supplied: a particular amount offered for sale at a particular price; a point on supply curve. Movement along supply curve: change in quantity supplied due to a change in price. Better technology, supply will increase(curve shift rightward) Relevant resources: those employed in the production of the good in question. Price decrease in relevant resource increases supply. Alternative goods-other goods that use some or all of the same resources as good in question.

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