What Happens to the Supply Curve When Certain Inputs Used

question 54

Essay

What happens to the supply curve when certain inputs used to make the products are banned? For example, fluorocarbon gases were used in the manufacturing of aerosol products, for example, hairspray, but were phased out by the Environmental Protection Agency (EPA) in the late 1970s.

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Definitions:

Continuous Budgeting

A process of constantly updating a budget for a set period in the future to reflect changes as they happen.

Safety Stock

Additional inventory held by a company to prevent stockouts, usually due to uncertainties in supply and demand.

Master Budget

A comprehensive financial plan that combines all of the individual budgets related to sales, costs, expenses, assets, and liabilities.

Merchandise Purchases Budget

A financial plan detailing the amount of goods that a retail or wholesale company plans to buy over a certain period to meet anticipated sales.