EC252

Show the derivation of a supply curve from the underlying fundamentals of producers solving their problem.In other words, show a societal PPF, given price line, and amount of good 1 produced.Then change the price of good 1 (either decrease or increase it) and show the new amount of good 1 produced.Change the price one more time (in the same direction) and show the new amount of good 1 produced.Plot your three (Q, P) points on a separate graph to reveal your supply curve.