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From course:

Economics A Level (DONEEEEEEE)

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Question:

How can Changes to the Price of Other Goods Lead to a Shift in Supply Curve?

Author: eric_galvao



Answer:

-If the Price of Product X had Increased, then a Firm may Switch Production from a less Profitable 'Good Y' to Increase the Production of X. This allows the Firm to make the most of the Higher Prices and enjoy more Profit -The Supply of Goods Y falls. -This is NOT JOINT SUPPLY


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