Possible Answers:
-the supply curve of chocolate chip cookies would shift rightward.
-the supply curve of chocolate chip cookies would shift leftward.
-there would be a movement upward along the supply curve of chocolate chip cookies.
-there would be a movement downward along the supply curve of chocolate chip cookies.
2007-01-16 13:29:26 · 5 answers · asked by Anonymous in Social Science ➔ Economics
There would be a movement downward along the supply curve
This results in a lower quantity supplied. Price only causes movemend along the current curves, it doesn't shift the curves
2007-01-16 13:37:43 · answer #1 · answered by auequine 4 · 0⤊ 0⤋
The supply curve is a fiction, it is simply a measure of what happened in the past with with no predictability for the future. If the price of chocolate cookies falls it falls for two reasons. Either the demand dropped or the supply increased or both. These may be long term or short term changes. Also it takes a while for people to effectively realize that the price changed and change their buying habits. And of course a change in habits change the curve. The real answer is that the curve slides up and down and back and forth, and nobody really knows. Hell, we would all get rich in the commodity market if it were this easy. The real economy is a dynamic place with hysteresis and feedback and feed forward. Not answers that your Econ professor would like. Anyway that is why he/she is teaching Econ, if they knew anything about Economics they would be on a yacht off the Bahamas. But in reality, since nobody can predict the market any better than a monkey (many studies indicate that) they by inference, don't understand it any better than a monkey either. So forget the supply curve and eat some bananas.
2007-01-16 13:49:49 · answer #2 · answered by Peter Peter Pumpkin Eater 2 · 1⤊ 0⤋
There is movement downward along the supply curve. If the price drops, demand would be high for it. As a result, there would be a shortage of cookies for everyone.
2007-01-16 16:33:28 · answer #3 · answered by wiegel81 2 · 0⤊ 0⤋
You're talking about graphs, right? I don't know which is which, but if the price of chocolate chip cookies falls, then a lot of people would buy them, right? I mean, they're so delicious~! ^__^
2007-01-16 13:34:22 · answer #4 · answered by kawaiisuzakuwarrior 4 · 0⤊ 1⤋
All I know is the curves of my butt would get bigger!!
=) (=
LOL
Jen
2007-01-16 13:40:25 · answer #5 · answered by InstructNut 4 · 0⤊ 0⤋