Effect on the supply curve


Task: For each of the following changes, show the effect on the supply curve, and state what will happen to market equilibrium price and quantity in the short run.

1. The government requires pollution control filters that raise production costs.

2. Wages of workers in this industry fall.

3. There is an improvement in technology.

4. The price of the product falls.

5. Producers expect that the price of the product will fall in the future.

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Microeconomics: Effect on the supply curve
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