IGCSE ECONOMICSThis proves that, as the price of a good rises, producer will want to supply more because (ifthey could sell all of the products they made) they would make more profit. Therefore thesupply curve extends.As the price falls, quantity supplied contracts. This is because as the price falls, firms willexpect to earn less profits.In the space below, draw a supply curve and show that as price rises, quantity suppliedextends (like the example of p. 6 of the workbook)Shifts in supply curvesAs we have seen, a change in the price of a product will cause its supply curve to extend orcontract. Changes in things other than the price will cause its whole supply curve to move (orshift). A movement of the whole supply curve for a good is called either an increase ordecrease in supply.Examine the market supply schedule for disposable razors below.Possible price of razors (p)Original supply per monthIncreased supply per month5010 00012 000408.00010 000306 0008 0002040006000

A supply curve is a graphical representation of the relationship between the quantity of a good or…

This proves that, as the price of a good rises, producer will want to supply more because (if they could sell all of the products they made) they would make more profit. Therefore the supply curve extends. As the price falls, quantity supplied contracts. This is because as the price falls, firms will expect to earn less profits. In the space below, draw a supply curve and show that as price rises, quantity supplied extends (like the example of p. 6 of the workbook)

This proves that, as the price of a good rises, producer will want to supply more because (if they could sell all of the products they made) they would make more profit. Therefore the supply curve extends. As the price falls, quantity supplied contracts. This is because as the price falls, firms will expect to earn less profits. In the space below, draw a supply curve and show that as price rises, quantity supplied extends (like the example of p. 6 of the workbook)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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