The "Law" of Supply
What matters is opportunity cost when looking at prices of goods.
When the price of a good goes up producers want to make more.
Each point on the supply curve actually represents the marginal opportunity cost of producing that particular unit.
What changes Supply?
Own price "Quantity Supplied" and when "Supply Shifts"
Input prices, technology, expectations, and substitutes all can increase or decrease supply
No comments:
Post a Comment