ECON_2306 => Lecture 3 Slides

Supply a the quantity of a good or service that a

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Unformatted text preview: the Points 10 20 30 40 50 60 70 80 Quantity of Principles of Microeconomics Corn o Q 45 o Q 46 Example Hewlett-Packard’s Supply Schedule and Supply Curve Which Which of the following defines a supply schedule? supply a. The quantity of a good or service that a firm is The service willing willing to supply at a given price. b. A table that shows the relationship between the table price of a product and the quantity of the product supplied. supplied. c. A curve that shows the relationship between the curve price of a product and the quantity of the product of and the quantity of the supplied. d. None of the above. 47 Principles of Microeconomics Principles of Microeconomics 48 12 Which Which of the following defines a supply schedule? supply a. The quantity of a good or service that a firm is The service willing willing to supply at a given price. b. A table that shows the relationship between table the price of a product and the quantity of the product product supplied. c. A curve that shows the relationship between the curve price price of a product and the quantity of the product rice roduct roduct supplied. supplied. d. None of the above. Example Individual Supply and Market Supply Deriving the Market Supply Curve from the Individual Supply Curves 49 Principles of Microeconomics Principles of Microeconomics 50 Which of the following procedures is correct? a. Individual supply curves can be obtained from Individual a market supply curve. market b. To derive a market supply curve, we add the To prices that producers must obtain in order to produce produce a given quantity of output. c. To derive a market supply curve, we add To individual supply cu individual supply curves. d. All of the above procedures are correct. Which of the following procedures is correct? a. Individual supply curves can be obtained from Individual a market supply curve. market b. To derive a market supply curve, we add the To prices that producers must obtain in order to produce produce a given quantity of output. c. To derive a market supply curve, we add To individual supply curves. individual supply cu d. All of the above procedures are correct. 51 Principles of Microeconomics Principles of Microeconomics 52 13 SUPPLY D. Determinants of supply. A change in any of the supply determinants causes a change in supply and a shift in the supply curve. An increase in supply involves a rightward shift, and a decrease in supply involves a leftward shift. SUPPLY 2. Six basic determinants of supply, other than price. Resource prices—a rise in resource prices will cause a decrease in supply or leftward shift in supply curve; a decrease in resource prices will cause an increase in supply or rightward shift in the supply curve. Technology—a technological improvement means more efficient production and lower costs, so an increase in supply or rightward shift in the curve results. Taxes and subsidies—a business tax is treated as a cost, so and subsidies business tax is treated as cost so decreases supply; a subsidy lowers cost of production, s...
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This note was uploaded on 04/15/2010 for the course ECON 2306 taught by Professor Bailiff during the Spring '08 term at UT Arlington.

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