Exceptional supply curves, Managerial Economics

Exceptional supply curves

In have some situations the slope of the supply curve may be reversed.  

i)   Regressive Supply.  In this case, the higher the price within a certain range, the smaller the amount offered to the market.  This may occur for example in some labour markets where above certain level, higher wages have a disincentive effect as the leisure preference becomes high.  This may also occur in undeveloped peasant economies where producers have a static view of the income they receive.  Lastly regressive supply curves may occur with target workers.

ii)    Fixed Supply.  Where the commodity is rare e.g. the "Mona Lisa", the supply remains the same regardless of price.  This will be true in the short term of the supply of all things, particularly raw materials and agricultural products, since time must elapse before it is physically possible to increase output.

Posted Date: 11/27/2012 5:58:29 AM | Location : United States







Related Discussions:- Exceptional supply curves, Assignment Help, Ask Question on Exceptional supply curves, Get Answer, Expert's Help, Exceptional supply curves Discussions

Write discussion on Exceptional supply curves
Your posts are moderated
Related Questions
Difficulties in using fiscal policy There are several problems involved in implementing fiscal policy.  They include: Theoretical problems Monetarists and the Keynesia

Shifts in the supply curve Shifts in the supply curve are brought about by changes in factors other than the price of the commodity. A shift in supply is indicated by an entir

Marginal Revenue Marginal revenue is the additional revenue an organization receives resulting from the sale of one more item of output. Marginal revenue is calculated by takin

Hi Could you please help me with " Ramsey pricing in detail " as I have an assignment.

Demand for money   The demand for money is a more difficult concept than the demand for goods and services.  It refers to the desire to hold one's assets as money rather tha

1. Explain the industry and describe the general pattern of change of the particular market model. 2. Hypothesize the basic short-run and long-run behaviours of the model in the

Pragmatic Managerial economics  Managerial economics is pragmatic. In pure micro-economic theory, analysis is performed, based on certain exceptions, which are far from reality

Because of the complex and dynamic nature of marketing phenomenon, demand forecasting has become a regular and significant business exercise. It is necessary for profit maximisatio

Q. Time Factor for Determinants of Demand? Price-elasticity of demand depends moreover on the time that consumers take to adjust to a new price: longer the time taken, greater

The variance of the OLS estimator is VAR( ^B)=σ 2 /ns 2 x , where   s 2 x =£x 2 /x You're hired to estimate   and you're going to be paid according to the accuracy of your esti