Answer to Question #163449 in Microeconomics for jasmine Cadena

Question

1. An increase in the price of hay would cause the supply of beef to _Decrease and the Supply Curve would move to the left__________. 

Which determinant causes this change?

Draw a graph showing the change in supply.

Answer 1

Answers to Task#163449

1. An increase in the price of hay would cause the supply of beef to _Decrease and the Supply Curve would move to the left__________.

Which determinant causes this change?

Factor prices or input prices is the determinant of supply causing the change on the supply curve.

An increase in price of hay,which is the input in our case, causes an increase in production cost hence reducing the quantity of beef supplied.

Draw a graph showing the change in supply.

Have a look at the photo below.