![]() Главная страница Случайная страница КАТЕГОРИИ: АвтомобилиАстрономияБиологияГеографияДом и садДругие языкиДругоеИнформатикаИсторияКультураЛитератураЛогикаМатематикаМедицинаМеталлургияМеханикаОбразованиеОхрана трудаПедагогикаПолитикаПравоПсихологияРелигияРиторикаСоциологияСпортСтроительствоТехнологияТуризмФизикаФилософияФинансыХимияЧерчениеЭкологияЭкономикаЭлектроника |
Law of supply and the supply curve. Non-price factors influencing to changes in supply. Factors affecting supply.
Quantity supplied (QS): The amount of an item that would be supplied at a certain price given all of the other influences on supply. The supply of commodity QS depends not only on the commodity's price P, but on many other factors (Non-price determinants): - the technology used (T): the rise of technology level shifts supply curve outward, because producer can propose higher quantity of commodity produced under the same price but lower costs; - the inputs' prices (Pi): the rise of an input price shifts the supply curve inward, because producer can propose lower quantity of commodity produced under the same price but higher costs); - expectations of future changes in price (E), - number of sellers (only for market supply): the growth of producers number shifts the supply curve outward if producers do not diminish their supply when new producers occur; - market organization (taxes and subsidies): the growth of taxes level decreases a good's supply and thus shifts commodity's supply curve inward, the subsidies move it outward; - special influences. The Law of Supply says that as the price P goes up, the quantity supplied QS also goes up, ceteris paribus (i.e. if the other factors considered above are constant). Supply curve: A graph of the relationship between price and quantity supplied (Fig.2.5). The positive (upward) slope of the supply curve reflects the law of supply. Let's consider a following scale of the offer (tab. 2.2)
Moving along the supply curve S is called change in quantity supplied (Fig.2.6). Change in quantity supply: A change in the amount of an item offered for sale in response to a change in its price, other things being equal. In this situation a change in price p is accompanied in general by a change in quantity q. A shift of supply curve (it may be not a parallel shift) is called a change of supply (Fig.2.7). Change in supply: A change in the relationship between the price of a good and the quantity supplied that results from a change in something other than the price of the good (non-price determinants changes).
|