Today's supply curve for iPods could shift in response to a change in

Question

Quizplus · Accepted Answer

A change in the expected future price of iPods would likely result in a shift in the supply curve for iPods. For example, if suppliers expect the price of iPods to increase in the future, they may reduce their current supply in order to save some units to sell at the higher price, resulting in a leftward shift in the supply curve. Conversely, if they expect the price to decrease in the future, they may increase supply now to capitalize on the current higher price, resulting in a rightward shift in the supply curve. Today's price of iPods and the number of buyers would not directly impact the supply curve shift.

Today's Supply Curve for IPods Could Shift in Response to a Change