Shift in the supply curve, Managerial Economics

Assignment Help:

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.


Related Discussions:- Shift in the supply curve

Cost Analysis, Michael was discussing the importance of production analysis...

Michael was discussing the importance of production analysis and cost analysis to managerial economics with a final year Open Campus student. The final year student, Catherine, sta

Homework, What market type does the company you work for operate under? Wha...

What market type does the company you work for operate under? What makes you think this? Do you think that this is the right market type for your company to operate in? Explain you

Show the long term goals - demand forecast, Q. Show the Long Term Goals - D...

Q. Show the Long Term Goals - Demand forecast? Long Term Goals:   If the demand forecast period is more than a year, in that scenario it's termed as long term forecast. Follow

Supply and demand, Discuss some of the effects of the economic downturn on ...

Discuss some of the effects of the economic downturn on supply, demand, inferior goods, complimentary goods, substitute goods, and price. words accepted#

Explain the short run production function, Q. Explain the Short run product...

Q. Explain the Short run production function? Discussion of production up to now has ignored the time required to build production facilities. There is a requirement to take in

Reasons for fluctuations in agricultural prices, REASONS FOR FLUCTUATIONS I...

REASONS FOR FLUCTUATIONS IN AGRICULTURAL PRICES Production depends on factors beyond the control of the producers e.g. weather, disease and pests.  Actual and planned output i

Cross elasticity, Cross Elasticity Cross elasticity of demand measures...

Cross Elasticity Cross elasticity of demand measures the degree of responsiveness of the quantity demanded of one good (B) to changes in the price of another good (A).  It is

Enumerate the scope of managerial economics, Enumerate the Scope of manager...

Enumerate the Scope of managerial economics The scope of managerial economics contains following subjects:  1. The Theory of demand 2. The Theory of production 3. The

Kinds of bargaining arrangements, Kinds of Bargaining arrangements Bas...

Kinds of Bargaining arrangements Basically there are three kinds of bargaining arrangements, namely: Open Shop: In an open shop a union represents its members, but doe

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd