Long-Run Supply Curve
Laura was in charge of purchasing food for the next book club meeting. She usually ordered sandwiches from
the nearby deli, but the price of sandwiches had increased. One option for food was ordering pizza, which was
$3 less than a sandwich. However, because the price of sandwiches had gone up, Laura could afford fewer
sandwiches and pizza than previous meetings.
The reduction in Laura's ability to purchase both sandwiches and pizza due to the increase of price in
sandwiches is known in economic terms as ________.
Budget Constraints: Change in Price
When a firm uses five machines, it can produce 600 units daily.
A sixth machine allows the firm to product 880