Answer to Question #45919 in Microeconomics for joshpin

Question

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

Answer 1

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