Principles of Macroeconomics / Unit 2 MAC 0115 short lesson, about 20 seconds
Seller Expectations and the Number of Sellers
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The idea
Supply also shifts with what sellers expect and with how many sellers there are. Expecting a higher price later, a seller holds stock back now.
In practice
An oil owner expecting a higher price next year leaves more in the ground this year.
Where people slip
More sellers shift supply right. A third shifter is the return available from producing something else.
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