Unformatted text preview: Figgge 3.7 . in the Law of Supply: Holding everything else constan ' .
quantity supplied and . - eases 1 pnc- cause . ecreases in the quantity supph ed. Shifts in supply curve: When ﬁrms increase the quantity of a product they wish to sell at a
given price, the supply curve shifts to the right. The shiﬁ ﬁ‘om $1 to S3 represents an increase in
supply. When ﬁrms decrease the quantity of a product they wish to sell at a given price, the
supply curve shifts to the left. The shift ﬁ'om 81 to S; represents a decrease in supply. Figge 3.8 Variables that shift supply:
0 Prices of inputs
0 Technological change
0 Prices of substitutes in production 0 Expected ﬁlture prices ...
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- Spring '11