109k views
4 votes
How does a change in Expectations cause a change in supply?

User Separius
by
7.9k points

1 Answer

3 votes
A change in the number of sellers in an industry changes the quantity available at each price and thus changes supply. An increase in the number of sellers supplying a good or service shifts the supply curve to the right; a reduction in the number of sellers shifts the supply curve to the left.
User Stepagrus
by
7.1k points