Answer to Question #56161 in Microeconomics for Scotti

Question

2. Other factors remaining the same, what would happen to the supply of a particular product of the following changes occur?
The price of the product falls.

A technological breakthrough enables the good to be produced at a significantly lower cost.

The prices of inputs used to produce the product increase.

The price of a product that is a substitute in production decreases.

The managers of firms that produce the good expect the price of the good to rise in the near future.

Firms in the industry purchase more plant and equipment, increasing the productive capacity in the industry.

Answer 1

Other factors remaining the same, what would happen to the supply of a particular product of the following changes occur?
The price of the product falls - no change in supply, only quantity supplied will decrease.
A technological breakthrough enables the good to be produced at a significantly lower cost - supply will increase.
The prices of inputs used to produce the product increase - supply will decrease.
The price of a product that is a substitute in production decreases - supply will decrease.
The managers of firms that produce the good expect the price of the good to rise in the near future - supply will increase.
Firms in the industry purchase more plant and equipment, increasing the productive capacity in the industry - supply will increase.