Exercise7 Translate the following text Supply The buyers’ demand for goods is not the only factordeter-
mining market prices and quantitied. The sellers’ supplyof
goods and services also play a role in determining market
prices and quantities. According to the law of supply, a
directrelationship exists between the priceof a good andthe
quantity supplied of that good.Achange in supply is not caused
by a change in the price of the good being supplied; that would
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induce a change in the quantity demanded. A change in supply
is caused by other factors, including:
1. Changes in the prices for other goods. Suppliers are
ofteh able to switch their production processes from one type of
good to another. For example, farmers might decide to grow
less corn and more wheat on the same land if the price of wheat
rises relative to the price of wheat.
2. Changes in the prices of inputs: The prices of the raw
materials or inputs used to produce a good also cause supply to
change. An increase in the prices of a good’s inputs will raise
costs to suppliers and cause them to supply less of that good at
all prices
3. Changes in technology: Advances in technology often
have the effect of lowering the costs of production, allowing
suppliers to supply more goods at all prices. For example, the
development of pesticides has reduced the amount of damage
done to certain crops and therefore has reduced the cost of
farming. The result has been an increase in the supply of these
crops at all prices.
