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Essay text:
in the town. In the spring the supply of housing tends to increase as more properties come onto the market.
THE SUPPLY CURVE:-
In most cases the more is supplied the higher the price. So supply curves slope upwards from left to right. Figure I 0. I shows a supply curve based on the supply schedule in Table 10. I.
MOVEMENTS ALONG A SUPPLY CURVE:-
Movements along the supply curve are referred to as extensions and contractions or as changes in the quantity supplied. Figure 10.2 shows an extension in supply. A rise in price from P to P causes an increase in the quantity supplied from Q to QL To supply larger quantities firms need higher prices in order to cover their higher costs...
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