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Smart Reasoning:

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Qaagi - Book of Why

Causes

Effects

6 Change in Supply A Change in Supplyleadsto a SHIFT in Supply Curve ( new supply curve

Shifts in the Supply of Bonds Government Activities Higher government deficits increase the supply of bondscausingthe supply curve to shift right

by changes in price however(passive) are caused byShifts within the supply curve

changes in price(passive) are caused byShifts WITHIN the supply curve

a higher price and quantity now supplied ( P 3 Q 3causean actual shift in the supply curve

The Supply Curve Changes in any of the factors OTHER than pricecausea shift in the supply curve

Any change in non - price factorswould causea shift in the supply curve

One environmental variable , a , in the supply function changescausingthe supply curve to shift

the demand curve ... the set of factorscausethe supply curve to shift

Supply Curve Shifts Factorswould causea shift in the supply curve

the demand curve ... factorscausethe supply curve to shift

changes in input prices , technology , or taxescausethe supply curve to shift

prices of related goods , expectations and size of the population FactorsCausea Shift in the Supply Curve

the demand ... the set of factorscausethe supply curve to shift

a change in supply conditionscausesthe supply curve to shift

by changes in the conditions of supply(passive) is causeda shift in the supply curve

Changes in the price of labor and non - labor inputscausethe supply curve to shift

However , in long - run , those factors do changecausinga shift in supply curve

Other , non - price factorswill causea shift in the supply curve

by non - price factors(passive) caused bya shift in the supply curve

All the above non - price determinants of demandcan causea shift of the supply curve

a change in any of the other elements of the demand functioncausesthe supply curve to shift

increases when supply increasescausinga rightward shift in the supply curve

a shift in the demand curve andcausesa shift in the supply curve

a shift in the demand curvewill ... leadto a shift in the supply curve

All the above non - price determinants of supplycan causea shift of the supply curve

the Supply Curve Sellers ' Expectations A change in sellers ' expectationscausesthe supply curve to shift

A change in anything else that effects the supply for the goodcausesthe supply curve to shift

A change in a factor other than pricecausesa shift of the supply curve

b. A change in pricecausesa shift of the supply curve

any other relevant variable that causes a change in the quantity supplied at any given price(passive) is caused byA shift of the supply curve

the change in these factorscausea shift in the supply curve

a change in the determinants of supply(passive) is caused byA shift of the supply curve

by something other than a change in price(passive) caused bya shift of the supply curve

Changes in the determinants of supplycan causethe supply curve to shift

a change in a goods own price(passive) is caused byA shift of the supply curve

A change in any determinant other than the price of the good in questioncausesa shift of the supply curve

A change in supplyleadsto a shift in the supply curve

reduction in supplycausingleftward shift in the supply curve

A change in pricecausesa shift of the supply curve

nevercausesnever

the equilibrium quantity to increase and the price to fallwill causethe equilibrium quantity to increase and the price to fall

The inflation we are experiencing(passive) is ... caused byThe inflation we are experiencing

the supply to decreasecausingthe supply to decrease

the equilibrium quantity to decrease and the price to risewill causethe equilibrium quantity to decrease and the price to rise

in different changes in equilibrium price and quantity based on the price elasticity of demandcan resultin different changes in equilibrium price and quantity based on the price elasticity of demand

the equilibrium price to rise and the equilibrium quantity to declinecausesthe equilibrium price to rise and the equilibrium quantity to decline

an imbalance in the market that is corrected by changing prices and demandcausesan imbalance in the market that is corrected by changing prices and demand

equilibrium output to fall and the price level to risecausesequilibrium output to fall and the price level to rise

equilibrium output to fallcausesequilibrium output to fall

Movement along the demand curve(passive) is caused byMovement along the demand curve

to a movement along the supply curveleadsto a movement along the supply curve

a movement up the demand curve ... resulting in a lower equilibrium quantity ( Q2 ) and a higher equilibrium price ( P2causesa movement up the demand curve ... resulting in a lower equilibrium quantity ( Q2 ) and a higher equilibrium price ( P2

the equilibrium to shift to point B.causesthe equilibrium to shift to point B.

a decrease in the equilibrium price along with an increase in the equilibrium quantitywill causea decrease in the equilibrium price along with an increase in the equilibrium quantity

to a new equilibrium with a quantity of output lower than the original quantity of outputleadingto a new equilibrium with a quantity of output lower than the original quantity of output

to an increased price , which increases producer surplus from area A to area A + B + C. Problems and Applications 1leadsto an increased price , which increases producer surplus from area A to area A + B + C. Problems and Applications 1

to a rise in the equilibrium price to P 2leadsto a rise in the equilibrium price to P 2

into increase the equilibrium pricewill resultinto increase the equilibrium price

to a rise in the equilibrium price toleadsto a rise in the equilibrium price to

in a movement along a stable demand curve to a new equilibrium price and quantitywill resultin a movement along a stable demand curve to a new equilibrium price and quantity

into a decline in the equilibrium pricewill resultinto a decline in the equilibrium price

to a rise in the equilibrium price to P2leadsto a rise in the equilibrium price to P2

to a rise in the equilibrium price to P2 ( theleadsto a rise in the equilibrium price to P2 ( the

stagflationcan causestagflation

The fall in the price(passive) must have been caused byThe fall in the price

examplescausesexamples

a movement along the demand curve and a reduction in quantitycausesa movement along the demand curve and a reduction in quantity

in more change in the equilibrium price or the equilibrium quantitywill resultin more change in the equilibrium price or the equilibrium quantity

a price rise across all commoditiescausinga price rise across all commodities

to a shift in the curve , Example of a Shift in the Demand Curvecan leadto a shift in the curve , Example of a Shift in the Demand Curve

to a movement along the demand curvewill leadto a movement along the demand curve

a movement along the demand curvewill causea movement along the demand curve

to an equal shift of the demand curveleadsto an equal shift of the demand curve

Movement along the supply curve(passive) is caused byMovement along the supply curve

to a change in price equilibrium where the price of the good and its substitute will increase and the quantity supplied will diminishresultingto a change in price equilibrium where the price of the good and its substitute will increase and the quantity supplied will diminish

the price fall on demand curve from Pm to Pccausesthe price fall on demand curve from Pm to Pc

to a lower price of labor ( wages ) and a higher quantity of labor ( jobsleadingto a lower price of labor ( wages ) and a higher quantity of labor ( jobs

to a movement along the demand curve for the firm 's outputwill leadto a movement along the demand curve for the firm 's output

to excess supplyleadingto excess supply

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Smart Reasoning:

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