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

Find out lowest efficiency wage and value , A risk-neutral agent's working ...

A risk-neutral agent's working life has two periods. In each period, the agent can provide high effort (at personal cost $2,000) or low effort (at zero personal cost). In a given p

Transfer payments, Transfer Payments Are any payments made to househol...

Transfer Payments Are any payments made to households by the government that are not made in return for the services of factors of production i.e. there is no Quid pro Quo.  S

What is the profit maximising ticket price, A promoter decides to rent an a...

A promoter decides to rent an arena for concert. Arena seats 20,000. Rental fee is 10,000. (This is a fixed cost.) The arena owner gets concessions and parking and pays all other e

Fundamental concepts of decision-making theory, fundamental concepts of dec...

fundamental concepts of decision-making theory The fundamental concepts of decision-making theory have been culled from microeconomic theory and have been furnished with new t

What do you mean by kinked isoquant, Q. What do you mean by Kinked Isoquant...

Q. What do you mean by Kinked Isoquant? This isoquant presumes only limited substitutability of labour andcapital. There are just a few processes for generating any one commodi

Comparability principle, The comparability principle Associations repre...

The comparability principle Associations representing workers providing services - clerical, postal, teaching, etc. - have always attempted to  apply the "principle of comparab

Short run equilibrium of a firm under monopoly, The short run equilibrium o...

The short run equilibrium of monopolist is displayed below in figure. Figure: Abnormal Profit under Monopoly AR is the average revenue curve, MR is marginal revenue cu

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