Shift in the supply curve, Managerial Economics

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 entire movement (shift) of the supply curve to the right (downwards) or to the left (upwards) of the original curve.

894_shift in supply curve.png

When supply increases, the supply curve shifts to the right from S1S1 to S2S2. At price P1, supply increases from q1 to q'1 and at price P2 supply increases from q2 to q'2. Conversely, a fall in supply is indicated by a shift to the left or upwards of the supply curve and less is supplied at all prices. Thus, when supply falls, the supply curve shifts to the left from position S2S2 to position S1S1. At price p1, supply falls from q'1 to q1 and at price p2, supply falls from q'2 to q2.

Posted Date: 11/27/2012 6:06:42 AM | Location : United States

Related Discussions:- Shift in the supply curve, Assignment Help, Ask Question on Shift in the supply curve, Get Answer, Expert's Help, Shift in the supply curve Discussions

Write discussion on Shift in the supply curve
Your posts are moderated
Related Questions
State the relevant economic quantities Managerial economics helps the management in predicting numerous economic quantities like profit, cost, capital, demand, price, productio

different types of markets and role in managerial economics

a bus operates two routes,one to harare and another one to johanesburg.the company analyst estimated that the elasticity of demand for joburg is 0.9 while for harare is 2.the compa

a) A country should always protect its domestic industries. Discuss. b) To what extent can a country actually rely on the principle of Comparative Advantage before engaging

Define Williamson''s Model of Managerial Discretion practice?

Basic textbook models, such as the Mundell-Fleming model, say that capital inflow happens due to the domestic interest rate being higher than the world interest rate, and therefore

Problem 1: Using the policy neutrality proposition, Illustrate and determine the effectiveness of applying counter-cyclical monetary policy to stabilise output around its long

A chemical producer dumps toxic waste into a river. The waste decreases the population of fish, decreasing profits for the local fishing industry by $100,000 per year. The firm cou

Managerial Economics helps create utility for the Society.

Williamson, Wachter and Harris (1975) suggest promotion incentives within the firm as a substitute to morale-damaging monitoring, where promotion is based on objectively measurable