dcfox83

revenant Wrote:
-------------------------------------------------------
> varundarji Wrote:
> --------------------------------------------------
> -----
> > So the supply curve will shift upwards and will
> > intersect the demand curve at a price greater
> then
> > the equilibrium price of 10$ i.e. say $12....so
> > this means that the rice will go to that ppl
> who
> > value it the most ....there will be an
> > underproduction of rice in the market and will
> > result in a dead weight loss....
> >
>
> Is this true? I don't think supply curve will
> shift in this case.


I think it should be a movement along the curve.