The supply curve , Microeconomics

Assignment Help:

The Supply Curve 

– The supply curve exhibits how much of a good manufacturerss are willing to sell at a particular given price, holding constant 

other factors that can affect quantity supplied

– This price-quantity relationship might be given by the equation:

1896_supply curve1.png

339_supply curve.png

Non-price Determining Variables of Supply 

– Costs of Production

• Capital

• Labor 

• Raw Materials

The cost of raw materials falls

– At P1, manufacture Q2 

– At P2, manufacture Q1

– Supply curve moves right  to S’

– More produced at any price on S’ than on S

147_supply curve2.png

Supply - A Review

– Supply is decided by non-price supply-determining variables as such as the cost of capital, labor, and raw materials.

– Changes in supply are given by shifting the complete supply curve.

– Changes in quantity supplied are revealed by movements along with the supply curve and are caused by a variation in the price of the product.


Related Discussions:- The supply curve

State the difference between indifference curve and isoquant, What is the d...

What is the difference between indifference curve and isoquants?  An indifference curve shows dissimilar combinations which a consumer can buy with a given level of income. Ind

Explain features of outward-oriented and inward-oriented, The main features...

The main features of outward-oriented and inward-oriented development strategies. Inward- oriented as focus on reducing domestic reliance on imports by executing high barrier

State intervention in an economy, Problem 1: The last half-century has ...

Problem 1: The last half-century has witnessed major changes in the role that governments of developing countries have played, especially in terms of public spending. (a) Ex

Theory, who propounded the pure international theory of trade?

who propounded the pure international theory of trade?

Marginal revenue, Marginal revenue: Marginal revenue is the change in ...

Marginal revenue: Marginal revenue is the change in total revenue with respect to a change in quantity sold. That is, it is the change in total revenue that results from the s

Allocation of a countrys resources to the price mechanism, What are the adv...

What are the advantages of leaving the allocation of a countrys resources to the price mechanism? Ans) The main conditions needed are: 1. Either a finite number of agents or pr

International monetary fund, International Monetary Fund: The Internat...

International Monetary Fund: The International Monetary Fund (IMF), the World Bank and the International Trade Organisation were conceived at the Brettonwoods Conference in Ju

Law of demand, The price of petrol fell during the past year. a. Explain...

The price of petrol fell during the past year. a. Explain why the law of demand applies to petrol just as it does to all other goods and services. b. Explain how the substitu

Insurance, Sita expects her future earnings to be worth Rs 100. If she fall...

Sita expects her future earnings to be worth Rs 100. If she falls ill, her expected future earning will be Rs 25, There is a belief that she may fall ill 2 with probability of -3

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