127-Beat_the_Teacher - of another good(the good itself A decrease in price causes a rise in quantity demanded(supplied it is too easy to forget and

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Beat the Teacher Highlight any errors you find in the following article Supply Supply is the quantity a producer is willing and able to sell at a given price in a given period of time. When we plot the supply curve, price is on the x axis and quantity is on the y axis. The supply curve is upward sloping. This is because there is an inverse (positive) relationship between price and quantity i.e. as price rises quantity rises. The reason the supply curve is upward sloping is because of the profit incentive when price rises A movement along the supply curve is caused by a change in the price
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Unformatted text preview: of another good (the good itself). A decrease in price causes a rise in quantity demanded (supplied, it is too easy to forget and write demand when we mean supply!) will cause a contraction in the demand curve. Other factors that cause quantity supplied to rise or fall make the supply curve shift. If the supply curve shifts to the left quantity supplied falls. Factors that cause the supply curve to shift include subsidies, indirect taxes, costs of production and income (this is a factor that causes a shift in the demand curve)....
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This note was uploaded on 02/08/2012 for the course STA 2021 taught by Professor Xu during the Spring '11 term at FIU.

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