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THE EFFECTS OF SUPPLY SHIFTS ON PRODUCERS SURPLUS

Authors: Miller, Gay; Rosenblatt, Joseph; Hushak, Leroy; Miller, Gay; Rosenblatt, Joseph; Hushak, Leroy;

THE EFFECTS OF SUPPLY SHIFTS ON PRODUCERS SURPLUS

Abstract

Changes in the supply curve caused by technological improvements in production or changes in national policy may or may not benefit producers as a whole, depending on the type of shift in the supply curve. Different changes in the supply curve that model this situation are studied and the change in producers surplus is examined depending on quantitative aspects of the supply and demand curves. It is shown that for supply and demand curves that are linear or power functions, a small downward pivot of the supply curve will increase producers surplus only if the equilibrium point is far enough into the elastic region of the demand curve, and any downward pivot of the supply curve will decrease producers surplus if the equilibrium point is in the inelastic region of the demand curve. Similar results are obtained for the more general case of convex supply and demand curves.

Keywords

Production Economics, Agricultural and Food Policy

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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