Answer to Question #45919 in Microeconomics for joshpin

Question #45919
what happens to supply of commodity when following changes occur the price of commodity decreases technological break through enables the food to be produced at significantly lower cost the prices of inputs used to produce the commodity increase the price of commodity that is substitute in production decrease managers of firms that produce good except the price of good to rise on near future firms in the industry purchase more plant and equipment increasing the productive capacity in the industry
1
Expert's answer
2014-09-10T11:37:18-0400
1. the price of commodity decreases - supply will increase
2. technological break through enables the food to be produced at significantly lower cost - supply will increase
3. the prices of inputs used to produce the commodity increase - supply will decrease
4. the price of commodity that is substitute in production decreases - supply will increase
5. managers of firms that produce good expect the price of good to rise on near future - supply will increase
6. firms in the industry purchase more plant and equipment increasing the productive capacity in the industry - supply will increase

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