Supply Curve A model that shows the quantity of output that producers in a market are willing and able to sell at different prices ceteris paribus ECON 162 9 30 15 Determinants of Supply 1 Price of good X Px 2 Resource prices Pr 3 Technology Tech 4 Expectations Exp 5 Number of firms N 6 Price of related goods Pz Is a Function Of Supply Equation S Q X F Px Pq Tech exp N Pz Quantity Supplied of Some Good X 1 Results from a change in Px only 2 Movement along a given supply curve Change in Supply 1 Results from a change in Pr Tech Exp N Pz 2 Shift of entire supply curve An Increase in Supply May Be Caused By 1 A decrease in resource prices 2 An increase in technology 3 An increase in business expectations X X is Held Constant Change in Quantity Supplied
View Full Document
Unlocking...