ECON 1050 Chapter 3: Economics-1 (1) (dragged) 4

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salmoneagle674

17 Sep 2016

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If the price of a factor of production used to produce a good rises, the minimum price that supplier is willing to accept for producing each quantity of that good rises. So a rise in the price of a factor of production decreases supply and shifts the supply curve leftward. A substitute in production for a good is another good that can be produced using the same resources. The supply of a good increases if the price of a substitute in production falls. Goods are complements in production if they must be produced together. The supply of a good increases if the price of a complement in production rises. If the price of a good is expected to rise in the future, supply of the good today decreases and the supply curve shifts leftward. The larger the number of suppliers of a good, the greater is the supply of the good.

Related Questions

a. State the law of supply.

	Quantity supplied rises as price increases, other things are constant. Quantity supplied falls as price decreases, other things are constant.
	Supply increases as price falls. Supply decreases as price rises.
	Supply increases as price increases. Supply decreases as price decreases.
	Quantity supplied rises as price falls, other things constant. Quantity supplied falls as price increases, other things are constant.

b. Why is price directly related to quantity supplied?

	As price rises, consumers substitute other goods whose price has not risen.
	As price rises, suppliers rearrange their activities to supply more of that good to take advantage of the higher price.
	As price falls, suppliers rearrange their activities to supply more of that good to take advantage of the lower price.
	As price rises, suppliers rearrange their activities to supply more of a substitute good to take advantage of the higher price.

silverwhale752

Which of the following is true?

a. The demand curve for a good shift leftward when the price of a substitute rises.
b. If consumers expect the price of a good will rise in the future, the demand curve shifts leftward.
c. An increase in population shifts the demand curve for most goods leftward.
d. For an inferior good, when income increases, the demand curve shifts leftward.

maroonferret252

When the price of good A rises, the supply curve of good B shifts rightward. Which of the following statements are true? OA. A is a factor used in the production of B. OB. A and B are complements in production. OC. A and B are complements. OD. A and B are substitutes in production. OE. A and B are substitutes.

ECON 1050 Chapter 3: Economics-1 (1) (dragged) 4

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