Economics – Demand and supply curves | e-Consult
Demand and supply curves (1 questions)
Here are three factors that could cause a shift in the supply curve for printed books, along with their impact on production costs and the quantity supplied, summarized in a table:
Factor | Effect on Production Costs | Impact on Quantity Supplied |
Rising Paper Prices | Increases the cost of a key input. | Decreases the quantity supplied. Firms are less willing to produce if their costs are higher. |
Increased Demand for E-books | May lead to underutilisation of existing printing capacity, increasing per-unit costs. | Decreases the quantity supplied. Firms may reduce printing to focus on e-book production. |
Changes in Printing Technology (e.g., more efficient presses) | Decreases the cost of production. | Increases the quantity supplied. Firms can produce more output at a lower cost. |