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Unformatted text preview: d, and vice
versa—called a direct relationship.
Quantity supplied refers to the number of
units of a good produced and offered for sale
at a specific price.
The supply curve is an upward-sloping line
(from left to right) that shows the amount of a
good sellers are willing and able to sell at various prices.
A market supply curve represents the sum of
all individual firms’ supply curves for a particular good. Section 2
Resource prices, advances in technology, subsidies, quotas, the number of sellers, future price
expectations, and weather are all factors that
can cause a shift in the supply curve.
The factor that causes a change in the quantity
supplied is price.
The elasticity of supply measures the relationship between the percentage change in price
and the percentage change in quantity
Supply is elastic when quantity supplied
changes by a greater percentage than price.
Supply is inelastic when quantity supplied
changes by a smaller percentage than price.
Unit-elastic supply exists when quantit...
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This document was uploaded on 01/16/2014.
- Winter '14