Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 4 - Demand, Supply, and Market Equilibrium - Exercises - 4.5 Market Effects of Changes in Supply - Page 94: 5.3

Answer

$\uparrow$ $\downarrow$ $\uparrow$

Work Step by Step

The supply curve shifts up when a supplier requires a higher price to supply a given quantity. Suppliers require higher prices when their costs increase, such as an increase in the cost of materials or an increase in taxes. Suppliers will accept a lower price when their costs decrease, such as when production technology improves.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.