Any topics is fine, as long as connected to microeconomic theories Term Paper

Any topics is fine, as long as connected to microeconomic theories - Term Paper Example therefore, drawing on a variety of sources the account will discuss how a decrease in terms caused by an increase in the list of supplier shifts the supply curve to the right based on an article on oil harms reduction. run is the amount of goods manufacturers or suppliers ar unbidden to sell at a certain price (Colander, 2008). The natural law of supply says that the higher the price of a product, the more the quantity suppliers or inviolables will be willing to produce and sell (Hall & Lieberman, 2012). Supply is usually plotted as a supply curve demonstrating the tie-in between price and the amount of products producers are ready to bring to the market and sell. As a declaration, it slopes from left wing to right.There are various factors that affect supply, First is the technology used to produce the good. If a firm uses advanced technologies to produce the product, more products will be manufactured increasing supply. Secondly is the price of the product. There is a proportional relationship between price and supply. If the price of a commodity increases, it will result in a proportionate increase in the quantities supplied. Third is the number of firms. When the number of manufacturers increases, there are more suppliers in the market leading to a drop in the price of the commodities supplied. Next is the price of alternative goods (Varian, 2009). When the price of an alternative good rises, the manufacturers find it profitable increasing drudgery. Fifth are the hereafter expectations of the producers. When the producers are looking forward to an increase in price in the future, they can increase their production so as to earn more profits in the future (Perloff, 2007). Consequently, the supply increases. Sixth is the price of inputs also affect supply. Goodwin, Nelson, Ackerman, and Weissskopf (2009) observe that an increase in the price of land, labor, and raw materials