Class Notes - 9-12-07

Class Notes - 9-12-07 - Microeconomics Class Notes IV...

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Microeconomics – Class Notes – 9/12/07 IV. Supply B. Decrease in Supply - Firms wish to sell fewer units at each price - Results in a shift to the left C. Causes of Changes in Supply 1. Changes in Technology used in Production - Lower cost of production - Firms increase Quantity supplied at each price - An increase in supply results in a shift in the supply curve to the right 2. Changes in Price of Inputs to Production - Decrease wages to pay workers * Can also change demand due to change in income (don’t really worry about this) - Decrease price of capital (interest rate) - * Increase in supply (shift to the right) 3. A Change in the number of firms - Ex. Decrease in the number of Firms (Firms exit market) - This results in a decrease in supply (A shift to the left) 4. A Change in government regulations - Taxes: * If a tax is implemented, there will be a decrease in supply and the curve will shift to the left - Subsidies: * If a subsidy is implemented, there will be an increase in supply and there
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This note was uploaded on 04/15/2008 for the course ECON 100 taught by Professor Stephaniemartin during the Fall '07 term at Allegheny.

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Class Notes - 9-12-07 - Microeconomics Class Notes IV...

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