AP Microeconomics / Unit 2: Supply and Demand
2.2 Supply
Notes
Law of supply: price up, quantity supplied up.
- Shifters: input prices, technology, taxes/subsidies, number of sellers, expectations, prices of other goods the firm could make.
Practice
A subsidy to producers shifts supply:
Lowers costs.
A per-unit tax on producers shifts supply:
Raises costs.
More firms entering a market:
Number of sellers.
Ready for more? Take the Unit 2 test.