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Chapter 3: Q 15. (page 78)

Will supply curves have the same shape in all

markets? If not, how will they differ?

Short Answer

Expert verified

No, supply curves won't have the same shape in all markets.

Step by step solution

01

Step 1. Define supply curve.

The supply curve is a graph that depicts the relationship between the cost of a commodity or service and the amount delivered over time.

02

Step 2. Will supply curves in all markets have the same shape? How will they vary if they don't?

The link between the price and quantity of a good that a seller is able and willing to supply is represented by the supply curve.

A supply curve's form is determined by how supply fluctuates in relation to its price change. Natural resources, for instance, are limited in quantity. As a result, the supply curve for land and resources will be steeper because increasing production is harder.

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Most popular questions from this chapter

Does a price ceiling change the equilibrium price?

Agricultural price supports result in governments holding large inventories of agricultural products. Why do you think the government cannot simply give the products away to poor people?

What is the difference between the demand and the quantity demanded of a product, say milk? Explain in words and show the difference on a graph with a demand curve for milk.

The computer market in recent years has seen many more computers sell at much lower prices. What shift in demand or supply is most likely to explain this outcome? Sketch a demand and supply diagram and explain your reasoning for each.

a. A rise in demand

b. A fall in demand

c. A rise in supply
d. A fall in supply

A tariff is a tax on imported goods. Suppose the U.S. government cuts the tariff on imported flat screen televisions. Using the four-step analysis, how do you think the tariff reduction will affect the equilibrium price and quantity of flat screen TVs?
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