Specifically if we look at the price 1000 we see that

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Unformatted text preview: 11/17/05 4:51 PM Page 119 each and every price. Specifically, if we look at the price $1,000, we see that sellers who once wanted to sell 4,000 computers now want to sell 2,000 computers. Supply increases → Supply curve shifts rightward Supply decreases → Supply curve shifts leftward What Factors Cause Supply Curves to Shift? Supply curves do not shift to the right or left without cause. They shift because of changes in several factors. These factors include a change in resource prices, technology, taxes, subsidies, quotas, number of sellers, future price, and weather. Resource Prices Chapter 1 identified four resources, or factors of production: land, labor, capital, and entrepreneurship. For now, concentrate on land, labor, and capital. These resources are used to produce goods and services. When resource prices fall, sellers are willing and able to produce and offer to sell more of the good (the supply curve shifts to the right). The reason is that it is cheaper to produce the good. When resource prices rise, in contrast, sellers are willing and able to produce and offer to sell less of the good (the supply curve shifts to t...
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