Shift in the supply curve, Managerial Economics

Assignment Help:

Shifts in the supply curve

Shifts in the supply curve are brought about by changes in factors other than the price of the commodity. A shift in supply is indicated by an entire movement (shift) of the supply curve to the right (downwards) or to the left (upwards) of the original curve.

894_shift in supply curve.png

When supply increases, the supply curve shifts to the right from S1S1 to S2S2. At price P1, supply increases from q1 to q'1 and at price P2 supply increases from q2 to q'2. Conversely, a fall in supply is indicated by a shift to the left or upwards of the supply curve and less is supplied at all prices. Thus, when supply falls, the supply curve shifts to the left from position S2S2 to position S1S1. At price p1, supply falls from q'1 to q1 and at price p2, supply falls from q'2 to q2.


Related Discussions:- Shift in the supply curve

Explain the short run production function, Q. Explain the Short run product...

Q. Explain the Short run production function? Discussion of production up to now has ignored the time required to build production facilities. There is a requirement to take in

Types of unemployment, TYPES OF UNEMPLOYMENT   A  person  can  be  eith...

TYPES OF UNEMPLOYMENT   A  person  can  be  either  in the labour force  or  not  in  the  labour  force  of  an economy. The person not  included  in  the  labour force includ

What is normative economics, What is Normative economics It is concerne...

What is Normative economics It is concerned with varied corrective measures that a management undertakes under lots of circumstances. It deals with goal determination, goal dev

Electron Control, Electron Control, Inc., sells voltage regulators to other...

Electron Control, Inc., sells voltage regulators to other manufacturers, who then customize and distribute the products to quality assurance labs for their sensitive test equipment

Manaerial economics, define scarcityand oppurtunity cost.show how these con...

define scarcityand oppurtunity cost.show how these concepts are useful in managerial decision making

Explain about concave isoquant, Q. Explain about Concave Isoquant? If t...

Q. Explain about Concave Isoquant? If the isoquant is concave to origin it would mean that marginal rate of technical substitution is increasing. This behaviour is explained in

Scarcity, What is the role of scarcity in management decisions-making

What is the role of scarcity in management decisions-making

Limitations of uneven distribution of income and wealth, Limitations of Une...

Limitations of Uneven Distribution of Income and Wealth Unlike the historical experience of the now developed countries, the rich in contemporary Third World Countries are not

Game theory, game theory matrix dominant strategy

game theory matrix dominant strategy

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd