Page 78 - The Principle of Economics
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78 PART TWO SUPPLY AND DEMAND I: HOW MARKETS WORK
Figure 4-7
SHIFTS IN THE SUPPLY CURVE. Any change that raises the quantity that sellers wish to produce at a given price shifts the supply curve to the right. Any change that lowers the quantity that sellers wish to produce at a given price shifts the supply curve to the left.
Price of Ice-Cream Cone
Supply curve, S3
Supply curve, S1
Supply curve, S2
Decrease in supply
Increase in supply
0
Quantity of Ice-Cream Cones
Ben’s Supply
Price of Price of Ice-Cream Ice-Cream Cone Cone
$3.00 $3.00
2.50 2.50 2.00 2.00 1.50 1.50 1.00 1.00 0.50 0.50
0 1 2 3 4 5 6 7 8 9 10 11 12 Quantity of Ice-Cream Cones
Jerry’s Supply
0 1 2 3 4 5 6 7 8 9 10 11 12
Quantity of Ice-Cream Cones
