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Chapter 3: 24 (page 78)

Name some factors that can cause a shift in the

supply curve in markets for goods and services.

Short Answer

Expert verified

When a change in some economic factor other than price causes a different quantity to be supplied at every price.

Step by step solution

01

Step 1:change in production cost and input prices can shift the supply curve.

Change in production cost and related factors shift the entire supply curve from right to left or vice- versa.

02

:natural conditions....natural calamities like drought, floods,etc.also affect the supply curve of market goods and services.

a drought decrease the supply of agricultural goods at a given price,a lower quantity of goods will be supplied.

03

Step 3:Government policies also affect the shiting of supply curve in market

government policies like taxes ,subsidiesand regulations also affect the cost of production and supply curve.

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Most popular questions from this chapter

What is deadweight loss?

Table 3.8 shows the information on the demand and supply for bicycles, where the quantities of bicycles are measured in thousands.

a. What is the quantity demanded and the quantity supplied at a price of \(210?

b. At what price is the quantity supplied equal to 48,000?

c. Graph the demand and supply curve for bicycles. How can you determine the equilibrium price and quantity from the graph? How can you determine the equilibrium price and quantity from the table? What are the equilibrium price and equilibrium quantity?

d. If the price was \)120, what would the quantities demanded and supplied be? Would a shortage or surplus exist? If so, how large would the shortage or surplus be?

Name some factors that can cause a shift in the demand curve in markets for goods and services.

Table 3.10 shows the supply and demand for movie tickets in a city. Graph demand and supply and identify the equilibrium. Then calculate in a table and graph the effect of the following two changes.

a. Three new nightclubs are open. They offer decent bands and have no cover charge, but make their money by selling food and drink. As a result, demand for movie tickets falls by six units at every price.

b. The city eliminates a tax that is placed on all local entertainment businesses. The result is that the quantity supplied of movies at any given price increases by 10%.

Explain why the following statement is false: “In the goods market, no seller would be willing to sell for less than the equilibrium price.”
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