This is in my microeconomics homework. I can't figure out the answers,

Posted on 2014-04-03 11:51:00 in Economics by ASHLEY

1. Your textbooks say that if the price of an alternative good to good A goes up then the supply curve of good A will shift to the left.

a) what assumption has to be made to get to that conclusion.

b) what will happen to the supply curve if this assumption cannot be made

Please explain your answers in no more than two paragraphs.

2. Explain what you think would happen to the supply curve if prices of the good is expected to increase. Please state all your critical assumptions and give an exception to the rule.

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