--%>
Assignment Help - homework help

Changes in price influencing supply

Describe how changes in the prices of other products influence the supply of a specific product.

E

Expert

Verified

The supply of good is inversly influenced with the change in price of another product which can illustrate as follows:

1) Rise in price of other product:? Whenever there is rise in the price of other product the production of such product become much profitable due to unchanged cost in comparison with the production of specific product. As an outcome the producer will generate more quantity of other product therefore the supply of given good will reduce.

2) Fall or Down  in the price of other product:? Whenever there is fall in the price of other product the production of such product become less gainful due to unchanged cost in comparison with the production of specific product. As an outcome producer will generate less quantity of other product, therefore the factors of production shifted for the production of specific good. It cause a rise in the supply of given good.

   Related Questions in Microeconomics

  • Q : Principles of Macroeconomics Questions

    (a) Explain the relationship between full employment of resources and full production. (b) Look at the following production possibilities curve illustrating the possibilities in Sluggerville for producing bats and/or p

    		•
  • Q : Features of oligopoly Features of

    Features of oligopoly: Following are some principal features of oligopoly : A) A few firmsB) High degree of interdependence.C) Non-price competition.D) Entry barriers.E) Formation of cartels

    		•
  • Q : Income elasticity of demand when

    When diamond sales jump from 3 to 13 million carats yearly while a strong recovery increases national income from $12.0 trillion to $13.2 trillion, in that case the income elasticity of demand for diamonds is: (1) 0.76. (2) 1.52. (3)

    		•
  • Q : Law of demand is price in the law of

    is price in the law of demand an absolute or relative price

    		•
  • Q : Imperfectly competitive market A firm

    A firm within an imperfectly competitive market is: (w) more likely to advertise than a purely competitive firm. (x) less probable to advertise than a purely competitive firm. (y) neither more nor less probable to advertise than a pure competitor. (z)

    		•
  • Q : Pure competition market A purely

    A purely competitive market would NOT be illustrated by: (1) many potential buyers and sellers. (2) each buyer or seller being a price taker. (3) an absence of long-run barriers to entry or exit. (4) aggressive advertising to compare brands. (5) a sin

    		•
  • Q : Problem on diminishing returns I have a

    I have a problem in economics on Problem on diminishing returns. Please help me in the following question. The principle of diminishing marginal utility is a contrast of the law of: (1) Comparative consumer benefit. (2) Diminishing returns. (3) Effective explanation.

    		•
  • Q : Operation of profit maximizing pure

    This profit-maximizing pure competitor would stop operating within this market into the long run when the price was expected to be persistently less than the price consequent to: (i) point c. (ii) point d. (iii) point e. (iv) point f. (v) point g.

    		•
  • Q : Perfectly inelastic supply of labor

    Glynn’s supply of labor is perfectly inelastic at: (1) point a. (2) point b. (3) point c. (4) point d. (5) point e. 2</span></p> </div> <!-- /comment-box --> </li> </td> </tr><tr> <td> <li> <div class=

    Q : Agency Shop Agreements Can someone

    Can someone please help me in finding out the accurate answer from the following question. Labor contracts having agency shop arrangements need: (1) Employees of a firm to give dues to the union. (2) The firm to hire just union members. (3) New employees of the firm t

    		•