Changes in Input Prices Input- a good or service that is used to produce another good or service Inputs have prices; an increase in the price of an input makes the production of the final good more costly for those who produce and sell it Changes in the Prices of Related Goods or Services A single producer often produces a mix of goods rather than a single product When a producer sells several products, the quantity of any one good it is willing to supply at any given price depends on the prices of its other co-produced goods Co-produced products are substitutes in production Other goods can be complements in production Changes in Technology All the methods people can use to turn inputs into useful goods and services When a better technology becomes available, reducing the ßcost of production— that is, letting a producer spend less on inputs yet produce the same output—
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This note was uploaded on 03/16/2012 for the course ECON 101 taught by Professor Hansen during the Fall '07 term at University of Wisconsin.