In the following table, indicate which factor would shift the supply curve for magic wands. Shifts Supply Curve Does Not Shift Supply Curve Factor Prices of inputs The number of firms in the market Technology Price of good Suppose that there is a decrease in the prices of inputs. Adjust the following graph by shifting either the curve or the orange square symbol, but not both, to show the effect of a decrease in the prices of inputs. PRICE (Dollars per magic wand) 30 27 24 21 18 15 12 CO 00 3 0 0 O 3 U 6 9 12 15 18 21 24 QUANTITY (Magic wands per month) Supply 27 30 Supply (?)

In the following table, indicate which factor would shift the supply curve for magic wands. Shifts Supply Curve Does Not Shift Supply Curve Factor Prices of inputs The number of firms in the market Technology Price of good Suppose that there is a decrease in the prices of inputs. Adjust the following graph by shifting either the curve or the orange square symbol, but not both, to show the effect of a decrease in the prices of inputs. PRICE (Dollars per magic wand) 30 27 24 21 18 15 12 CO 00 3 0 0 O 3 U 6 9 12 15 18 21 24 QUANTITY (Magic wands per month) Supply 27 30 Supply (?)

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 2TY

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