【正文】 ? Population ? Preferences Demand 169。 2020 Pearson AddisonWesley Prices of Factors of Production If the price of a factor of production used to produce a good rises, the minimum price that a supplier is willing to accept for producing each quantity of that good rises. So a rise in the price of a factor of production decreases supply and shifts the supply curve leftward. Supply 169。 2020 Pearson AddisonWesley When demand decreases, the equilibrium price falls and the equilibrium quantity decreases. Predicting Changes in Price and Quantity 169。 2020 Pearson AddisonWesley An Increase in Demand Figure shows that when demand increases the demand curve shifts rightward. At the original price, there is now a shortage. The price rises, and the quantity supplied increases along the supply curve. Predicting Changes in Price and Quantity 169。 2020 Pearson AddisonWesley Figure shows a supply curve of energy bars. A rise in the price of an energy bar, other things remaining the same, brings an increase in the quantity supplied. Supply 169。 2020 Pearson AddisonWesley Figure shows a demand curve for energy bars. Demand 169。 and the lower the price of a good, the larger is the quantity demanded. The law of demand results from ? Substitution effect ? Ine effect Demand 169。 2020 Pearson AddisonWesley The Law of Supply The law of supply states: Other things remaining the same, the higher the price of a good, the greater is the quantity supplied。 2020 Pearson AddisonWesley Price as a Regulator Figure illustrates the equilibrium price and equilibrium quantity. If the price is $ a bar, the quantity supplied exceeds the quantity demanded. There is a surplus of 6 million energy bars. Market Equilibrium 169。 2020 Pearson AddisonWesley Increase in Both Demand and Supply An increase in demand and an increase in supply increase the equilibrium quantity. The change in equilibrium price is uncertain because the increase in demand raises the equilibrium price and the increase in supply lowers it. Predicting Changes in Price and Quantity 169。 2020 Pearson AddisonWesley Technology Advances in technology create new products and lower the cost of producing existing products. So advances in technology increase supply and shift the supply curve rightward. The State of Nature The state of nature includes all the natural forces that influence production— for example, the weather. A natural disaster decreases supply and shifts the supply curve leftward. Supply 169。 2020 Pearson AddisonWesley Expected Future Ine and Credit When expected future ine increases or when credit is easy to obtain, the demand might increase now. Population The larger the population, the greater is the demand for all goods. Preferences People with the same ine have different demands if they have different preferences. Demand 169。3 DEMAND AND SUPPLY 169。 2020 Pearson AddisonWesley Expected Future Prices If the expected future price of a good rises, current demand for the good increases