ECON 3 Lecture 3: Lecture 3
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Lecture 3: ch3 (cont. : complementary good (same direction): one that is used together with another good, substitute good (opposite direction): one that can be used in place of another good. Change in consumer expectations: future prices, future income. Supply: a schedule or curve showing the various amount of a product that producers are willing and able to make available for sale at each of a series of possible prices during a specific period. Supply schedule: shows quantity of product that will be supplied at various prices. Amount producers are willing and able to sell at a given price. Law of supply: other things equal, as the price rises, the quantity supplied rises and as the price falls, the quantity supplied falls. Explanation: price acts as an incentive to producers, at some point, costs will rise. A change in the number of sellers. A change in taxes and subsidies (tax on production) A change in prices of other goods.
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Related Questions
Identify four shift factors of supply with the correct explanation of how each affects supply.
Instructions: To receive full credit, you must make a selection for each option. For the correct answer(s), click the box once to place a checkmark. For the incorrect answer(s), click twice to empty the box.
Ā | Producers expect prices of their products to change in the future. As the price that producers expect to sell their products for increases, supply decreases. |
Ā | Income declines. As income rises, supply increases. |
Ā | Reduction in taxes paid by consumers. As taxes rise, supply falls. |
Ā | The price of inputs changes. As the price of inputs rises, supply decreases. |
Ā | When new production technologies have introduced the cost of production falls and supply increases. |
Ā | Change in taxes paid by producers. As the amount of taxes that producers pay increases, supply decreases. |
Ā | Change in consumer tastes. As the taste for a product rises, supply increases. |