ECON 20 Lecture Notes - Lecture 5: Excess Supply, Price Ceiling, Economic Equilibrium

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amaranthgrasshopper262

28 Aug 2020

School

Irvine Valley College

Department

Economics

Course

ECON 20

Professor

mcneil

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Document Summary

Shift in the supply curve: the change that takes place in a supply curve corresponding to a new relationship between quantity supplied of a good and the price of that good. The shift is brought about by a change in the original conditions. Assume that the objective is to maximize profits. The technologies that can be used to produce the product (increase in supply at a set price) The price of input (land, labor, capital) As with demand, it is important to distinguish movements along supply curves (changes in quantity supplied) and shifts in supply curves (changes in supply) Changes in price of a good or service change in quantity supplied (movement along supply curve) Changes in input princes or improved technology change in supply (shift on the supply curve) Market supply: the sum of all that is supplies each period by all producers of a single product.

Related Questions

6. The primary difference between a change in supply and a change in the quantity supplied is that: A) a change in quantity supplied is a movement along the supply curve, while a change in supply is a shift in the supply curve. B) both a change in quantity supplied and a change in supply are movements along the supply curve, only in different directions. C) a change in supply is related to the supply curve, while a change in quantity supplied is related to shifts in the demand curve that elicit a change in supply. D) a change in supply is a movement along the supply curve, while a change in quantity supplied is a shift in the supply curve.

The primary difference between a change in supply and a change in the quantity supplied is that:

A) a change in quantity supplied is a movement along the supply curve, while a change in supply is a shift in the supply curve.

B) both a change in quantity supplied and a change in supply are movements along the supply curve, only in different directions.

C) a change in supply is related to the supply curve, while a change in quantity supplied is related to shifts in the demand curve that elicit a change in supply.

D) a change in supply is a movement along the supply curve, while a change in quantity supplied is a shift in the supply curve.

grayspider353

: Do the following cause a change in demand (shift in demand curve), change in supply (shift in supply curve), change in quantity demanded (movement along demand curve) or change in quantity supplied (movement along supply curve)?

1) The market for Aquafina water. The price of Dasani increases.

2) The market for ground beef. The price of cow-feed increases

. 3) The market for hamburger patties. The price of hamburger buns decreases.

4) The market for pistols. Republicans fear that a democratic president will initiate new gun control laws making it more difficult to purchase guns.

ECON 20 Lecture Notes - Lecture 5: Excess Supply, Price Ceiling, Economic Equilibrium

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