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Unformatted text preview: change. If they have to pay more for the book, their profits drop, and make them less willing to sell books at prices they were willing to sell at before the change. We can see this below: Figure %: A Shift in the Supply Curve Notice that for any given price, the store will sell fewer books than before, reflecting the higher costs and lower profits they get for each book. Without changing the price at which they sell the book, we have shifted their supply curve and changed their willingness to sell. Thus, changes in profits can shift a firm's supply curve, even if the market price stays constant. We will later learn how to graphically visualize a firm's profits in a given market by using their different costs, sources of income, and the market price and demand....
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This note was uploaded on 02/09/2012 for the course ECO ECO2013 taught by Professor Jominy during the Fall '08 term at Broward College.
- Fall '08