Principles of Macroeconomics 7th Edition

Published by South-Western College
ISBN 10: 1-28516-591-8
ISBN 13: 978-1-28516-591-2

Chapter 4 - The Market Forces of Supply and Demand - Questions For Review - Page 86: 6

Answer

This is a question that again asks you to determine the determinants of supply. Observe this list: ROTTEN- Related Goods, Other Goods, Technology, Taxes and Subsidies, Expectations, Number of Sellers and Natural Disasters (Supply Shock) These are supply determinants.

Work Step by Step

Remember the acronym. To do this think of supply and inventory. When you save your inventory too long it goes ROTTEN. Then simply identify which is which to figure out what is a supply shift or movement along the curve.
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