Supply Curve the only thing that causes movement along a supply curve is a

Supply curve the only thing that causes movement

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Supply Curve- the only thing that causes movement along a supply curve is a change in price Shifts of the Supply Curve- changes in input prices, changes in the price of related goods or services, changes in technology, changes in expectations, changes in the number of producers
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Equilibrium = where the supply and demand curve meet Surplus = more than needed, above equilibrium point (excess supply) Shortage = less than needed, under equilibrium point (excess demand) Module 7 Shifts Simultaneous shifts in both the supply and demand curves When the demand increases and supply decreases, equilibrium quantity increases but equilibrium price is unknown When the demand decreases and supply increases, equilibrium price decreases but equilibrium quantity is unknown When both demand and supply increase, equilibrium quantity increases but equilibrium price is unknown When both demand and supply decrease, equilibrium quantity decreases but equilibrium price is ambiguous Module 8 Price Controls- Price Ceilings and Price Floors Price ceilings = rent control, goes under equilibrium price Price floors = minimum wage, goes above equilibrium price Both cause illegal activity, inefficiency, and wasted resources (Black Markets) Module 9 Quantity control = quota (licenses) “the wedge” = quota rent quantity controls cause deadweight loss which is equal to the quota rent Module 10
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