Answer to Question #24685 in Microeconomics for maggy iihuhua

Question

1. distinguish between a supply function and a supply curve.
2. what is the ifference between a change in the quantity supplied and a shift in the supply curve?
3. explain three assumptions concerning consumer behaviour.

Answer 1

1. A supply function represents how much of a good or service a producer/supplier will supply at a price of the product and combinations of other factors. Supply curve is graphical representation of supply function.
2. Change in the quantity supplied is the move along the supply curve, but the shift in the supply curve is the move of the curve rightward or leftward.
3. 1) Individuals possess complete and perfect info about alternatives in the market
2) Make a decision based on having all the alternatives available/objective info
3) An individuals purchases will not exceed the amount of income