A rise in the cost of raw materials (but not machinery) raises the cost. The good becomes cheaper to produce.

When any effort by government causes the supply of a good to rise what happens to the supply curve for that good?

The product price is shown on the vertical axis on the graph and the quantity supplied is on the horizontal axis. When the government causes the supply of a good to rise, the curve will cause a shift to the right. hope this helps!

What is the term for supply of a product that can easily or quickly expand or reduce its production?

What is the principle of the law of supply. The higher the price, the larger the quantity produced. What is the term for supply of product that cannot easily or quickly expand or reduce its production? inelastic. You just studied 6 terms!

What is one reason European governments protect?

Answer Expert Verified. European government protects the growth of food by giving subsidies, in the form of direct payments or tax credits, to the local farmers even though imported food would be a cheaper option for them.

What effect does a rise in the cost?

Terms in this set (12) What effect does a rise in the cost of machinery or raw materials have on the cost of a good? The good becomes cheaper to produce. What does new technology generally do to production? It increases cost and decreases supply.

What happens to supply when demand increases?

When demand exceeds supply, prices tend to rise. There is an inverse relationship between the supply and prices of goods and services when demand is unchanged. However, when demand increases and supply remains the same, the higher demand leads to a higher equilibrium price and vice versa.

What happened to the price of a good when there is excess demand?

Prices. Prices and the occurrence of excess supply illustrate a strong correlation. When the price of a good is set too high, the quantity of the product demanded will be diminished while the quantity supplied will be enhanced, so there is more quantity supplied than quantity demanded.

How does technology affect the cost of production?

Also as the production increases, the fixed cost is spread over more units, causing the average fixed cost to also decrease. The decreasing average variable cost is reflected by advancement on technology such as machinery and computer technology.

Why is it important to implement new technology?

No matter what size, companies are constantly looking to increase productivity, efficiency, and performance. Naturally, the implementation of new technology can accomplish that. However, while introducing new technologies is essential in running a successful company, how we choose to introduce those technologies can make or break their success.

How does a rise in the cost of machinery affect the price of a good?

What effect does a rise in the cost of machinery or raw materials have on the cost of a good? It will increase its price What does new technology generally do to production? Make it more efficient What is one reason European governments protect the growing of food with subsidies even though imported food would be cheaper?

How does technology affect the short run curve?

Every advancement on technology makes the production easier, quicker and at a low cost. Technology has a great impact on short-run curves by when technology advances then production of units will increase. When technology advances so does the production of units increase which causes the average variable cost, which is the costs …