Ch.+6.2

Ch. 6.2 Notes
 * factors that make a shift in the supply curve to the left or right include things such as technology, new government taxes and subsidies, and changes in the prices of raw materials and labor used to produce the good
 * shift in supply could occur in the development of new technology, this causes things to be cheaper because machines are making it easier for goods to be produced
 * Surplus- situation in which quantity supplied is greater than quantity demanded; also known as excess supply
 * lower costs on production of goods has shifted the supply curve to the right where at each price, producers are willing to supply a larger quantity, this puts us in a disequilibrium
 * as better technology out dated the old technology, this caused the equilibrium in the market to gradually start moving to the right
 * this means that the quantities demanded and supplied are higher, and the prices are lower
 * Just as things can make the curve shift to the right, there are factors that can make the curve shift to the left
 * for example if steel rises in price automobile manufacturers will produce fewer cars at all price levels and the supply curve would shift to the left
 * shortage- the situation in which quantity demanded is greater than quantity supplied also known as excess demand
 * search costs- the financial and opportunity costs consumers pay when searching for a good service