ECON 1101 1st Edition Lecture 5Outline of Last Lecture I. Supply and Demanda. Shiftingi. Law of Demandb. What Causes Shiftingi. Related Goodsii. Incomeiii. Number of Buyers/Consumer RatesOutline of Current Lecture I. Supply Curvea. Law of Supplyb. Causes of Supple Shiftsi. Price of Inputii. Number of Sellersiii. TechnologyCurrent LectureSupply CurveAs 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 curveThese 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 Shifts1) Price of Inputa. Ex: Labor, materials usedb. Ex: Immigration affects/cuts price of farm laborc. Wages increase, the quantity supplied DECREASES at each price level.2) Number of Sellersa. Ex: wheat farmers switching to cornb. Quantity Supplied for corn INCREASES at each price level3) Technologya. ex: new seeds/fertilizer inventedb. Quantity Supplied INREASES at each price level*SHORT LECTURE TODAY DUE TO MOBLAB EXPERIMENT DONE IN
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