Unformatted text preview: • Changes in supply of other factors (fixed inputs) Factor Supply • What determines people’s willingness to supply factors of production? • Example of labor supply: Supply of labor depends on willingness to trade work for leisure • Backward bending supply curve- at a point you realize you don’t need to work as much Shifts in Labor Supply Curve • Changes in preferences/norms (women in the workforce) • Change in population • Changes in Wealth • Changes in employment opportunity...
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- Spring '07
- Economics, VMP, product VMP Defines, VMP curve