Home > Uncategorized > The Shape of the Supply Curve

The Shape of the Supply Curve

Here’s a great example of a practical question that someone well-informed about microeconomics has a better chance at answering correctly. The gist of the question is this:

If individual energy users use energy more efficiently, what will happen to price and equilibrium quantity?

The person asking the question is suggesting that it’s possible the same amount of energy will be consumed if these energy-saving devices are widely adopted.

First understand the question, then read the comments. What do you think?

Categories: Uncategorized
  1. Brian
    January 2, 2012 at 2:06 pm

    i think that if energy users are to use energy more efficiently, this causes the demand curve to shift to the left since less energy is being demanded than before. This leads to a decrease in price and a decrease in equilibrium quantity as well.

  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: