40 econ

40 econ - change in the quantity supplied : refers to...

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20:43 2.1 supply curve     Relationship between the quantity of a good that producers are  willing to sell and the price of the good. Slopes upward The higher the price, the more that firms are able and willing to produce and sell Q = Q (P) A relationship between quantity supplied and the price The quantity that producers are willing to sell depends not only on the price they  receive but also on their production costs, including wages, interest charges, and  the costs of raw materials. When production costs  decrease,  output  increases  no matter what the market  price happens to be.  The entire supply curve thus shifts to the right. When production costs  decrease,  output  increases  no matter what the market  price happens to be.  The entire supply curve thus shifts to the right. change in supply :  refers to shifts in the supply curve
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Unformatted text preview: change in the quantity supplied : refers to movements along the supply curve. demand curve Relationship between the quantity of a good that consumers are willing to buy and the price of the good. Q D = Q D ( P ) Slopes downward Consumers usually buy more if prices are lower A higher income level shifts the demand curve to the right substitutes Two goods for which an increase in the price of one leads to an increase in the quantity demanded of the other. Ex: Beef and Chicken complements Two goods for which an increase in the price of one leads to a decrease in the quantity demanded of the other. Ex: Decrease in price of gasoline leads to an increase in the quantity demanded for cars 20:43 20:43...
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40 econ - change in the quantity supplied : refers to...

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