2. Explain and show (separately) on a graph how each of the following would affect the supply of calculators:
a. Technology for producing calculators gets better
b. More firms enter the calculator industry c.
The prices for calculators are expected to rise over the next month
(a) Technology for producing calculators gets better. Because if this now producers can produce more with the same level of inputs .As a result, supply increases and shift to the right from S to S1. This is shown in the figure below:
(b) More firm's enter the calculator industry . This will increases the total supply of calculators in the industry.As a result, supply curve shifts to the right.This is shown in the figure below:
(c) Price for calculators are expected to rise in future.So, producers will supply more in the future. As a result of this supply of calculators fall now and shifts to the left. This is shown in the figure below:
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