Favor of selling inventories, Microeconomics

If producers expect future prices to enhance, current supply will decline in favor of selling inventories at higher prices later.  In other words, supply will reduce (a shift to the left, and exactly the opposite response will happen if producer expect future prices to be lower.  If the number of suppliers enhances, so too will supply, but if the number of producers declines, so too will supply.

 

Posted Date: 4/19/2013 5:52:49 AM | Location : United States







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