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Changes in supply presentation

The future expectation of prices also affects Supply immensely. If it is expected that prices of a commodity will fall in the future, the demand for the commodity will fall which will result in falling production and Supply of the commodity. Similarly, if the prices are expected to rise, the demand for the commodity will increase causing pressure on the Supply of the commodity in the present.

References

  • Mankiw, N. Gregory (1998). Principles of Economics, Wall Street Journal Edition. Dryden Press, San Diego. pp. 71–73. ISBN 0-03-098238-3.
  • Melvin & Boyes, Microeconomics 5th ed. (Houghton Mifflin 2002)
  • Ayers & Collins, Microeconomics (Pearson 2003) at 66.
  • Rosen, Harvey (2005). Public Finance, p. 545. McGraw-Hill/Irwin, New York. ISBN 0-07-287648-4.
  • Goodwin, N, Nelson, J; Ackerman, F & Weissskopf, T: Microeconomics in Context 2d ed. Page 83 Sharpe 2009
  • Goodwin, Nelson, Ackerman, & Weissskopf, Microeconomics in Context 2d ed. (Sharpe 2009) at 83.
  • Samuelson & Nordhaus, Microeconomics, 17th ed. (McGraw-Hill 2001), p. 53.
  • Samuelson & Nordhaus, Microeconomics, 17th ed. (McGraw-Hill 2001) at 56
  • Colander, David C. Microeconomics 7th ed. Page 90. McGraw-Hill 2008.
  • Melvin & Boyes, Microeconomics 5th ed. (Houghton Mifflin 2002) at 60.

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