Principles of Microeconomics / Unit 2 MIC 0115 short lesson, about 20 seconds
Seller Expectations and the Number of Sellers
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The idea
Two more supply shifters: sellers' expectations and the number of sellers. A seller expecting a higher price holds stock back now, shifting supply left; more sellers shift it right.
In practice
Oil owners expecting higher prices leave oil in the ground.
Where people slip
A third is the return from alternative uses of inputs: if chickens sell better, fewer are kept for eggs, so egg supply falls.
Your place on the trail
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Builds on
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