ECON 1101 1st Edition Lecture 5 Outline of Last Lecture I Supply and Demand a Shifting i Law of Demand b What Causes Shifting i Related Goods ii Income iii Number of Buyers Consumer Rates Outline of Current Lecture I Supply Curve a Law of Supply b Causes of Supple Shifts i Price of Input ii Number of Sellers iii Technology Current Lecture Supply Curve As the OWN PRICE is higher more supplies are willing to sell higher quantity supplied Something outside of the sell price of the product must happen to effect curve These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Law of Supply When the price decreases the quantity supplied decreases which of course also means when the price increases the quantity supplied increases This is the reason why the curve is an upward slope Price changes only result in a movement along the curve Causes of Supply Shifts 1 Price of Input a Ex Labor materials used b Ex Immigration affects cuts price of farm labor c Wages increase the quantity supplied DECREASES at each price level 2 Number of Sellers a Ex wheat farmers switching to corn b Quantity Supplied for corn INCREASES at each price level 3 Technology a ex new seeds fertilizer invented b Quantity Supplied INREASES at each price level SHORT LECTURE TODAY DUE TO MOBLAB EXPERIMENT DONE IN LECTURE
View Full Document
Unlocking...