Changes in production cost and related factors can cause an entire supply curve to shift right or left. This causes a higher or lower quantity to be supplied at a given price.
A supply curve demonstrates how the delivered amount will alter
as prices rise and fall, assuming ceteris paribus— no other
economically appropriate factors change. If other supply-related
factors change, the entire supply curve will alter. A supply shift
implies a change in the delivered amount at any cost.
Say, for a certain type of vehicle, we have an original supply
curve. Now imagine that the cost of steel— an significant
ingredient in the production of cars — is rising so that it becomes
more costly to produce a vehicle. This cost increase will result in
the supply curve shifting to the left
a fall in production costs will result in supple and a shift of the supply curve
1.Supply siders believe that a shift in the aggregate supply curve to the right will result in: A movement along the Phillips Curve A shift of the Phillips curve A shift of the Laffer Curve No change 2. Which of the following is not a policy idea of Supply Side Economists? Lower taxes Protect the environment Deregulate Invest in Human Capital
A rightward shift of the demand curve for computer programmers will result in a shift in the supply curve for programmers and an increase in the price of computer programs movement along the supply curve for computer programs movement along the supply curve for computer programmers and a shift in the supply curve for computer programs movement along the supply curve for programmers and a decrease in the price of computer programs
The aggregate supply curve will shift to the left if A. energy prices fall B. the capital stock of the economy increases C. the money wage rate increases D. technology & productivity increase in the economy
QUESTION 6 The aggregate demand curve would shift to the right as a result of a drop in the foreign exchange value of the dollar. a decrease in the amount of money in circulation. a drop in the price level. tax increases. QUESTION 16 According to Keynesian economics using the modern short-run aggregate supply curve, if there are unutilized resources in the economy and the aggregate demand decreases real GDP will fall and price level will fall. real GDP will...
5. Improvements in technology that reduce production costs cause the _____ curve to shift to the _____, indicating a(n) _____ in the amount _____ at each price point.A.demand; right; increase; demandedB.supply; left; decrease; suppliedC.demand; left; decrease; demandedD.supply; right; increase; supplied6. Assume a farmer’s land is equally productive in growing corn or potatoes and is currently producing both. If the price of corn increases but the price of potatoes does not change, the farm’s supply curve for potatoes will:A.shift to the...
An economy's production possibilities curve could shift outward as a result of a(n) a) increase in labor and capital b) reduction in the quantity of capital goods c) decrease in the production of goods or d) decrease in the amount of available resources?
Choose the factors that will shift the supply curve for cars: 1) New cheaper production, 2) union deal increases labor cost, 3) price increase of raw materials, 4) an increase in price of cars
Which of the following will shift the supply curve to the right? a) A change in consumer tastes and preferences. b) Government regulation of production. c) A decrease in the price of inputs to production.
Assume that both the demand curve and supply curve for mp3 players shift to the night but yhe demand curve shiftsmore than the supply curve. as a result a. the equilibrium price of mp3 players will decrease, the equilbrium quantity may increase or decrease b. the equilibrium price of mp3 players may increase or decrease, the equilbrium quanity will increase c. both the equilibrium price and quantity of mp3 players will increase
Which of the following does not result in a shift of the production possibilities curve? Firms develop a new technology to increase the output of Klondike bars and Oreo cookies (thegoods measured on the PPC) The unemployment rate changes from 5% to 4% Firms develop a new technology ti increase teh output of Klondike bars (one of the goods measured on the PPC) Additional resources of land become available