Question

(below) to the following question: What is an example of (just) one thing that could happen today in the United States, which would result in an increase in the Supply (Curve) of a product that you are familiar with? Before posting your answer, make sure to read the answers others have posted, to ensure that your example is different than the examples that they have used in their postings. Your posting should be at least two paragraphs long, and reference (just) one of the typical factors of supply highlighted within Chapter Three. You should also specify a particular business firm (by name) that is a supplier in the Product Market, and identify (just) one specific good or service that they sell. (Please note that the one thing that cannot cause the Supply for a product to change would be C for the price of the product itself to change - this only changes the quantity supplied by business firms). And make sure your postings don't have any spelling errors in them (words underlined in red in Canvas by the auto-spell checker)

Answer 1

American Building Company is one of the leading builders (housing) in the US market . If government provides a subsidy to this company, supply of houses will increase. This is because provision of subsidy will decrease the cost of production. As a result, the builder can make more houses at the same price level. Here, the supply curve for houses will shift to the right. Now, demand curve for houses/building remaining the same, the new equilibrium is attained at the point where equilibrium price falls and equilibrium quantity rises.

Here, subsidy is a determinant for supply of houses in the United States. With increase in subsidy, supply rises. The supply curve will shift to the right. Similarly, if subsidy falls, supply of houses will also decrease. Then , the supply curve will shift to the left.