No Free Lunch: Economics for a Fallen World: Third Edition, Revised

Chapter Four: Supply 97 inputs, a producer is able to supply more for a given change in price. In the long run, all production inputs are variable: GM can even build more plants to produce Camaros. In this case, the supply curve will be very elastic. IT’S A WRAP! Congratulations! If you’ve stuck with it this far, you now have the basics to perform economic analysis. You may have heard, “it’s all supply and demand.” While not strictly true, the integration of supply and demand is a powerful explanatory vehicle of much of what we see around us. Some may call it simple analysis, but it is not simplistic! In chapter 5 you will begin to put these concepts to work.